Cost increases

Facing cost increases and other financial pressures, RHA Health Services turned to Lockton to take a more strategic approach to its employee benefits program. The objective:
keep net costs steady from 2017 to 2018 while maintaining the current benefits proudly offered to employees. Despite ever-increasing healthcare costs, the Lockton account team helped RHA navigate the path to robust yet cost-efficient offerings through Group Plan Strategy (GPS).

Exisiting Lockton client

As an existing Lockton client, RHA Health Services was familiar with Lockton’s resources and processes. In 2017, RHA was ready to utilize those resources and shake things up with more creativity around benefit options within its existing budget. As a service-oriented company, RHA looked to Lockton to make changes that showed support and compassion for its staff, despite limited financial resources. 

Group Plan Strategy (GPS)

To do this, the Lockton team utilized Group Plan Strategy (GPS), a proprietary tool that demonstrates a company’s current plan position, financial opportunities and any possible friction to employees associated with those opportunities. The result is a more impactful and strategic discussion regarding the current and future state of the company’s health and benefits programs.

Hands on work session

Lockton led a group of RHA decision makers, comprised of the HR and benefits teams as well as the CFO, through a strategic planning session with the GPS tool. The roll-up-your-sleeves working session lasted four hours during which the Lockton team led a live modeling session using the GPS modeling tool. Together they discussed more than 65 tactics in the following areas:

  • Purchasing efficiency.
  • Eligibility management.
  • Health risk solutions.
  • Participant cost sharing. 

Collaborative exploration

The collaborative GPS exploration session helped the decision makers within RHA prioritize and strategize benefits offerings that fit the organization. For each idea, the group was able to collectively consider employee friction and potential cost savings. The discussion ruled out many tactics that were not appropriate due to company culture, size, funding and locations; some tactics were ruled out simply because they were not the right balance of savings versus anticipated employee friction.

Lockton and RHA

Lockton worked closely with RHA to identify a final list of tactics to deploy over the next three years. The result was a benefits plan that carefully considers how much administrative bandwidth RHA had to implement the programs.

Lockton worked closely with RHA to identify a final list of tactics to deploy over the next three years. The The hands-on session with Lockton allowed us to dive deep into the process and consider factors we hadn’t thought of. The GPS tool gave us a way to prioritize potential offerings in a logical, long-term sequence. We were able to develop a strategic plan that met cost savings goals while balancing the needs of our employees.”

 

-Denise Turner, Vice President of Human Resources at RHA

RHA's three year plan

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