When a healthcare system faced significant healthcare cost increases, Lockton recommended a dependent eligibility audit as one strategy to solve the problem. The client agreed to conduct a comprehensive review of all spouses and children covered under its benefit programs. The client wanted to reduce future health plan costs as well as manage its fiduciary exposure and liability under the ERISA Exclusive Benefit Rule and limit Section 125 exposure. The 30-plus hospitals participating nationwide found that, on average, 12 percent of enrolled dependents were ineligible for healthcare benefits under the hospital’s guidelines. The client estimates first-year savings of $20 million while the ROI for this dependent eligibility audit is estimated between 500 percent and 1500 percent per hospital.

A water utility company received unsatisfactory results from a Health Risk Assessment (HRA) in 2007. A low participation rate and several participants’ assessments with health concerns prompted action from Lockton’s Health Risk Management team. Lockton developed a branded initiative that included, among other things, nutrition and stress classes, exercise encouragement and premium discount incentives. Lockton’s work raised HRA participation, lowered the percentage of employees with health concerns and contributed to a significant decrease in the total medical expenses paid per member per month.

A large mining company realized a need to reevaluate its benefits package, as it had gone unmonitored for an extended period of time. Lockton’s research revealed that employees received attractive benefits, but there needed to be a review of dependent eligibility. Lockton predicted several outcomes of the review before hiring a firm to conduct the review in a three-step process. The results of the dependent eligibility evaluation far exceeded the initial predictions, saving the company a projected $2.6 million and significantly decreasing its health care costs.

A graphic design firm faced several issues with its benefits program and sought Lockton’s service to address the problems. Lockton and the company compiled a list of open items, which Lockton tackled. Lockton’s communication consultants developed an open-enrollment platform to help employees choose the best benefits package for their needs. The benefits team also reviewed and corrected past benefits-related financial reports and implemented a wellness program to encourage employees to live healthier. Aiding in the company’s international expansion, Lockton provided international support through offices in Canada and Mexico City. The company has expressed its appreciation for Lockton’s relationship-based support and partnership. The company values Lockton’s efforts to reduce its medical and dental claim funding by $20,000 per month, supply 30 percent of its employees with more suitable benefits, and generate 64 percent participation in the first year of a Health Risk Assessment program.

The economy was punishing one of Lockton’s prospective clients, a big ticket consumer products delivery company. The costs of the firm’s benefits plan became an increasing concern for its leadership and its private equity owners. So the distributor needed an innovative solution.

Lockton conducted a review of the benefits program and the company’s business model. Lockton recommended a two-tiered benefit strategy, offering the company’s lower-earning employees a limited medical plan.

Lockton created a separate benefits classification for lower-earning employees, so they had basic coverage for day-to-day medical expenses, such as wellness visits. This allowed the client to move from a non-existent employee benefits program to half of the workforce with a limited medical plan.

Lockton’s plan reduced the premium increase from initial indications of a 12% increase to a 3% increase. This lower cost option also increased employee participation by 30%. These results and service exceeded client expectations.