Cost Management

Prescription drug costs, demographic pressures and turnover are just some of the factors that create cost management pressures for employee benefit plans.

While the general Consumer Price Index (CPI) has hovered around 2% - 4% for the last several years, prescription drug costs have approached 14% and general healthcare is in excess of 8%. When trend and utilization factors are included some clients have experienced Healthcare renewals of up to 20% or more.

Additionally, Dental costs have also risen quite dramatically through fee guide increases, utilization pattern changes and treatment protocols from the dentists.

Long Term Disability premium rates have also increased due to a higher incidence of disabilities. General ageing of the population continues to put pressure on all insurance costs.

While many clients feel that these increases cannot be controlled, there are in fact a number of methods available to manage costs. These include plan design changes such as:

    • DC approach to benefits
    • Communication and education
    • Claim management

  Program Set Up:

    • ASO (Administrative Services only)

    • Retention Accounting