How to Review an Existing Benefits Plan (Case Study)

VanTransport ABC Ltd came over to Brightin when they had 13 employees and an existing benefits plan. They only spoke to their former broker at the annual renewal. When they approached us, they had just acquired two new clients and had to hire several employees to help manage the accounts. Their accountant recommended to get an independent plan review and referred them to Brightin.
The owner, John Smith had a few concerns:

  • He needed more specialized and experienced staff. He had no idea if his benefits plan was competitive next to what other employers in the industry are offering.
  • A couple of claims issues had come up this year and it took way too much of his time to handle. He just did not have the time to deal with benefits issues as the company was growing.
  • He wondered if this was the best plan he get his employees for these premiums.

At our first meeting, we brought Mr. Smith statistics of what benefits other employers are offering their employees in his industry. He was happy to see his plan was not that far off and that with only a few percent on his bottom line, he could offer a much superior plan to even his largest union competitors.

He shared what claims issues he had encountered this past year and to his surprise, we knew the quickest resolution – without having to consult with the insurer. We assured him that our team handles similar issues for our clients all the time and we get back with an answer most often within the hour.

We also discussed their current plan set-up and administration. He was shocked to find out that the plan set-up was not aligned with the company policy and CRA guidelines. After discussing the plan, the administrative approach and the plan objectives, Mr. Smith decided to hand over the benefits plan servicing to us.

We then proceeded to go to market and requested quotes from 9 insurance carriers. While waiting for the insurers to come back, we fixed a total of 12 administrative errors and provided our email templates to simplify and save time on the most common plan administrative tasks. When the market survey came back, we short-listed the top 2 proposals and compared all benefits in detail. We found that one of the insurers would bring 11% sustainable savings to VanTransport ABC plus another 8% 1 year savings – a total 19% savings for the first year. Given the potential long-term savings, the superior plan administration and claims submission platform with this other insurer, we recommended VanTransport ABC switch their plan over.

Our team conducted the full-service, seamless transition to the new plan. The benefit plan provider change happened over 3 meetings, 1 hour each. This included enrollment, one-on-one meetings with each employee, and plan administrative training for the new administrator.

We have since received two referrals from Mr. Smith to other small businesses.

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