Total Rewards

Alternative Funding: Savings & Renewal Increase Mitigation


A Non-Profit Employee Benefits client (in the Healthcare industry) of over 5 years was faced with a healthcare increase of 17% which equated to over $115k in additional Employer cost. As the trusted advisor, Exude was asked to propose a strategy that would not only cut Employer cost but also keep employee contributions steady since salaries were not high. Exude was also tasked with working to put in place a program that would help improve the health of the population in all seven locations over time. These challenges all came during a time when the organization was going through a major change in leadership and organizational direction.


The Exude Benefits Consultant implemented an alternative funding vehicle for the organization without disrupting the network of doctors and hospitals the employees were accustomed to. This alternative program was coupled with onsite physiologists meant to serve as a hands-on approach to lay the foundation for improving the health of the population. Biometric screenings were held along with 1:1 sessions to create awareness around the correlation of addressing risk factors early and better outcomes.

In the end, Exude was able to provide our client:

  • A benefits package that was exactly the same in plan design under the alternative funding arrangement as it was under the fully insured program.
  • A program that not only mitigated the 17% increase, but also ended in a savings of $148k over the fully insured renewal.
  • An ongoing wellness solution that would continue to improve upon the health of the population, thereby improving the overall plan savings.
  • A program that has essentially turned back the hands of time in terms of plan costs. Today the annual healthcare spend for this client is approximately 36% lower than what it would have been under a fully insured arrangement four years ago.
  • These savings have enabled employee contributions and plan design to remain unchanged for the last four years.