In 2015, they realized that if they didn’t make a change, they wouldn’t be able to offer healthcare to their employees by 2018.
“At that point, our only way forward was to make the deductibles more and more unaffordable. We were about stretched to the limit of what we thought an employee could ever afford.”Bently Durant, Chief Operating Officer and General Counsel
Classic Auto Group dove into researching options for how to structure a more affordable health plan. They looked into reference-based pricing and a core principle stuck out for Durant—in healthcare, just like when car shopping, the best to time to negotiate is before you buy.
The company moved to a self-funded health plan with reference-based pricing and expectations were high. Unfortunately, their first reference-based pricing provider didn’t get the job done.
“The calls weren’t made, and the negotiations never happened, and the claims went unpaid. Everyone was unhappy.”