White Paper / Employee Benefits
A Reference-Based Pricing Success Story

In 2014, a midsize employer in rural Missouri hit a crossroads . . . or perhaps a brick wall.

After several years of battling increased taxes, government-mandated changes, and double-digit increases in medical costs, the company’s medical plan costs were expected to increase again . . . this time by $1 million.

Even if the employer increased its contributions to the plan by $700,000, employee contributions would still have to increase by 23 percent.

With the help of Lockton’s Kansas City Benefits team, the employer made a bold decision, moving all of its 1,350 employees from a traditional PPO health insurance plan to a reference-based pricing model.

Here is the story of how one employer fought back against rising healthcare costs, the status quo, and that law known as health reform . . . and won.

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