Like most companies, TÜV SÜD (Technical Inspection Association, South) had seen the annual cost of healthcare skyrocket for its U.S.-based employees.
The cost of a fully insured plan “was getting unaffordable,” says company financial executive Jason Hamelin.
“Healthcare is the second largest expense for our organization, and it was important to control costs while at the same time provide competitive benefits for our employees.”Jason Hamelin, Senior Financial Executive of TÜV SÜD America
At that point, the company’s broker began to help look for an alternative. They researched reference-based pricing (RBP) and found the savings potential with the solution to be impressive. They first used a RBP solution offered by a small, local third-party administrator (TPA). But it did “not work well from a service or a disruption standpoint,” says Hamelin. The company kept looking for a solution that would offer a better structure and better service.