Case Study: Sky Harbor Airport Parking Cuts Health Insurance Costs by 31% with Benefits Blueprints
Overview
Sky Harbor Airport Parking is an off-airport parking facility conveniently located only 4 minutes from terminal 4 at PHX.
Sky Harbor Airport Parking, a trusted parking provider serving travelers in the Phoenix area, faced a looming 10% cost increase on their existing Aetna health insurance plan. With rising healthcare costs threatening their budget, they sought a solution that could maintain the quality of benefits for employees while reducing expenses. Benefits Blueprints, a leading health insurance benefit brokerage, delivered an innovative solution through level-funded health plans, resulting in a remarkable 31% cost reduction.
Challenge
Sky Harbor Airport Parking's leadership was prepared to absorb a 10% increase in health insurance costs for the upcoming year. However, the company's budget constraints made the increase a burden that could impact other operational priorities. Additionally, the leadership team wanted to ensure employees continued to receive comprehensive healthcare coverage without sacrificing quality or creating undue stress.
Solution
Benefits Blueprints approached the challenge with a strategic and personalized solution:
Education on Level-Funded Plans
Benefits Blueprints introduced the concept of level-funded health plans, a cost-effective alternative to traditional group insurance. These plans blend the benefits of self-insurance with the predictability of fixed monthly costs.Individual Medical Questionnaires (IMQs)
To maximize potential savings, Benefits Blueprints guided Sky Harbor Airport Parking’s employees through completing confidential Individual Medical Questionnaires (IMQs). These detailed assessments allowed for a more accurate underwriting process, uncovering opportunities for significant savings based on the employee group’s health profile.Customized Plan Design
Based on the IMQ results, Benefits Blueprints worked with insurance carriers to design a tailored health plan that delivered substantial cost savings without compromising the quality of benefits.
Results
Cost Savings: Sky Harbor Airport Parking achieved a 31% reduction in annual health insurance costs compared to their current plan—well beyond the anticipated 10% increase they were preparing to absorb.
Employee Satisfaction: Employees reported a smooth transition to the new plan with no disruption to their healthcare coverage.
Sustainability: The level-funded plan offered the company more transparency into healthcare spending, enabling them to better manage costs in the future.
Key Takeaways
This case highlights the power of a proactive and customized approach to health benefits:
Strategic Use of Level-Funded Plans: Tailoring health plans based on employee medical data can uncover hidden cost savings while maintaining or improving coverage.
Employee Engagement: Actively involving employees in the process, such as completing IMQs, ensures a more accurate representation of health risks and potential savings.
Broker Expertise: Partnering with a knowledgeable broker like Benefits Blueprints can transform a routine renewal into an opportunity for significant financial and operational gains.
Conclusion
Sky Harbor Airport Parking’s partnership with Benefits Blueprints demonstrates how innovative strategies in health insurance can drive down costs while preserving the well-being of employees. By leveraging level-funded plans and thorough analysis, the company not only avoided an anticipated cost increase but also achieved a 31% reduction in expenses.
For businesses seeking cost-effective health insurance solutions, Benefits Blueprints offers a proven roadmap to success.