A nonprofit fundraising leader achieved $2 million in savings
- Global leader in nonprofit fundraising
- Located across five continents
- Covered employees: 500
Skyrocketing Employee Healthcare Costs.
For several years, nonprofit fundraising leader Innovairre was mostly satisfied with its fully funded benefits program. But after seeing significant jumps in the cost of premiums and claims, the company began exploring reference-based pricing (RBP) as an alternative.
Although intrigued by the cost-saving potential of RBP, Innovairre initially was hesitant to make the switch. Then came 2018. The company faced a 50% renewal increase despite having had a positive claim experience the year before. It tried making modifications to the benefit plan to keep costs down.
“It got to a point where we couldn’t afford it as a company – and our employees couldn’t afford it either.”Tracy Maloy, Chief People and Culture Officer at Innovairre
Innovairre’s leadership knew it was time to switch to a self-funded plan so they could take advantage of the cost-savings from an RBP solution.
After comprehensive research, Maloy and other project leaders chose Imagine360’s reference-based pricing solution. Imagine360 provides a powerful health plan solution with RBP built in and access to select health providers nationwide.
And Imagine360’s personalized service and empathetic advocacy stood out, according to Maloy:
“That really was important to me, because it was all about the employee experience,” she said. “They talked about employee advocacy in a different way, in a way that I related to. When you’re somebody’s advocate, that means you’re fighting for them.”
Hesitancy about making a big change quickly dissolved. In Imagine360, Innovairre saw a true collaborative partner that would help the company navigate the initial unfamiliar territory. And with RBP, employees would pay a fair price for their healthcare without increased contributions, which was very important to Maloy.
Innovairre achieved $2 million in savings in 2019 after implementing a self-funded plan powered by Imagine360. And as of November 2021, healthcare costs were $1 million under budget.
LOWER COSTS VERSUS PPOs IN THE REGION
without cost increases for employees
in healthcare savings in 2019
With money saved on healthcare expenses, Innovairre now offers:
Innovairre reinvested in their workforce. The result that Maloy is happiest about? Innovairre has been able to roll cost savings into a better experience for employees, with expanded benefits, higher salary increases and stable healthcare costs. “Our employees haven’t had a premium increase since 2018,” she said.
“Because of the savings, I was able to fund a new position on the HR team that is helping employees but also is adding value to the business.”
Putting a Pin in Inflated Healthcare Pricing. “Businesses are some of the largest consumers of the medical field because of our employees. We have to take control of it; we have got to push back on costs, and RBP is a way for us to push back on pricing,” Maloy said, emphasizing her belief that companies can make a real difference in the fight against ballooning healthcare costs.
Despite some hesitation about making the switch to RBP, the company has no regrets.
“The initial change and getting used to it holds employers back,” Maloy said. Working with a strong collaborative partner like Imagine360 to navigate changes has made all the difference. “You can manage it.”