• Identify the lowest cost health plans that met service and medical management performance requirements for each market that had at least 250 employees
•  Achieve the optimal balance of contracting with lowest cost health plans, minimizing employee disruption and minimizing the number of different health plan vendors

Solution:

• Complete a market assessment to identify viable health plans in each target market
• Solicit hospital and physician negotiated payment information as well as administrative fees
• Perform a detailed state by state analysis of health plan cost and identify the best-in-market health plan for each location

Results:

Contracted with two health plan vendors that had a presence in all target markets and kept employee disruption under 5%. This strategic sourcing initiative produced savings of $12 million in the first year of implementation