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.