Leading Truck Parts Manufacturer


Situation

This organization is a premier supplier of lift truck attachments headquartered in Northwast U.S. with several other locations across the country and over 400 employees and 100 retirees.  This client has a rich history with long-tenured employees and a company culture not accustomed to change.

Challenges

Having a self-administered medical plan increased financial exposure, compliance issues and internal time spent on plan administration. Self-funded long-term disability created significant financial exposure and the most cost effective provider networks were not being taken advantage of.

Actions

Craford conducted an RFP for all lines of coverage – Replacing self-administered Medical/Rx/Dental programs with two national vendors.  The provider network was enhanced from both an access and savings standpoint and a self-funded LTD was replaced with an insured plan.

Results

The client achieved a savings of $150,000 on Medical/Rx with a total actual first year cost savings over $700,000, including prior year run out.  Internal administration costs were dramatically decreased.  Compliance exposure was reduced by utilizing outside vendors and a 44% savings on Life Insurance allowed for LTD to be insured at virtually no additional cost.