$400,000 in Savings Instead Of Predicted $250,000
Releasing the trapped capital from Community Action Partnership (CAP)’s healthcare plan
Cumulative Healthcare Savings
At a Glance
Community Action Partnership (CAP) is a non-profit organization established under the New Deal, primarily funded by federal resources. CAP is dedicated to providing training and occupational enhancement services to a diverse demographic, including young adults, post-secondary graduates, and individuals facing career transitions.
This case study explores how Better Source Benefits improved CAP’s healthcare benefits, won the case, and brought significant savings to the organization.
Remarkable Savings
- The partnership yielded substantial savings, with an initial year reduction of $780,000 in comparison to the previous year’s costs
- Even more impressively, CAP managed to secure a flat rate renewal, resulting in no increase in healthcare costs for the organization.
Initial Consultation
- Three years ago, Better Source Benefits reached out to CAP’s CEO with a proposal to enhance their benefits and financial performance.
- The CEO granted the consultant an opportunity to provide guidance, under the condition that the consultant would guarantee results with no change if the promised improvements were not achieved.
- A consulting contract was established, and the consultant presented findings and recommendations to CAP.
- CAP implemented the consultant’s recommendations, but retained their existing insurance broker.
Outcome
Better Source Benefits and CAP collaborated to implement a strategic healthcare solution, which included the following components:
- Reference-Based Pricing
- Optimized Pharmacy Benefits Manager
- High-Performance Third-Party
- Specialty Benefit for Prescription Drugs with Rx Sourcing
- Long-Term Stop-Loss Insurance Protection
Benefits And Value Delivered
- Better Source Benefits intervention improved Cap’s benefits, enhancing plan performance.
- CAP received substantial cost savings and returned three-quarters of a million dollars to their bottom line.
- The organization achieved a rate renewal with no changes.
Efficient Management of High-Cost Drugs
- To manage the costs associated with high-cost drugs, CAP implemented RX sourcing, a program that helped transfer some of the expenses.
- CAP ensured that no one had to be excluded from the healthcare plan while effectively controlling costs.
Monthly Performance Monitoring
- The consulting approach provided regular performance reviews, allowing CAP to track their success continuously.
- Quarterly and six-month reviews demonstrated consistent performance, leading to a smooth renewal process with no changes in the program.
BONUS: Employee Wage Increases & Additional Benefits
Thanks to the savings generated through the healthcare plan improvements by Better Source Benefits, CAP was able to make a retroactive payment adjustment of 6% across the board for its employees. The starting wage for employees was raised from $9.25 to $12 per hour.
- CAP employees enjoyed lower costs for prescriptions and medical procedures.
- The organization introduced free telemedicine services, which were widely used.
- A new partner, “EASY ACCESS, MD” was implemented to provide on-site basic lab work and X-rays at convenient locations.