Health Insurance Daily

Tool Company Switches Health Plans, Saves Thousands

Like most companies, Perfection Tool and Mold Corp, was shelling out more money every year for employee health benefits.

But unlike most companies, the small tool shop saw its health care costs decrease for the first time in a decade last year. In fact, the company saved more than $100,000, or 48 percent, under a new benefits plan compared with what it would have spent with its usual plan, which would have jumped another 46 percent upon renewal.

By changing the way it funded employee benefits, Perfection was able to save money without passing on more of the cost to its 15 employees and without cutting its benefit package, said Chris Ross, vice president of engineering. "It's helped us a lot," Ross said.

Perfection bought a high-deductible plan from Anthem Blue Cross and Blue Shield, which was less expensive than the no-deductible plan the company had traditionally purchased.

The employees' premium contribution and co-pays remained the same.

The above article was published by the Dayton Business Journal, August 26,2005.

posted by Mike @ 7:50 AM