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Case Studies Labor Union
About the Client
Customer name:
Teamsters Local 671
Location:
Bloomfield, Connecticut
Industry:
Health Services and Insurance
Challenge
RetireeFirst, the leader in Retiree Benefit Management solutions, partnered with Teamsters Local 671 Health Services and Insurance Plan to help them address the financial burden of their self-insured prescription plan.
“RetireeFirst’s expertise in Medicare, and their deep understanding of how to best structure prescription drug plans, have been invaluable to Teamsters Local 671 Health Services and Insurance Plan.”
John R. Glutz, Principal, O’Sullivan Associates
Solution
In 2017, the Fund was paying $223 per month, per member, which prompted Anthony Frasco, RetireeFirst’s Chief Financial Officer, to present an opportunity to O’Sullivan Associates, the fund’s consultant, to move the group to a Medicare Part D EGWP. This move saved the client 15% in 2018 and locked in the costs for 2 years, providing a more cost-effective solution.
RetireeFirst’s approach to plan design and carrier relationships has resulted in significant cost savings for Teamsters Local 671 Health Services and Insurance Plan.
15% Cost Savings Per Member in 2018
Moving the group to a Medicare Part D EGWP saved the client 15% per month, per member, in 2018 and locked in costs for two years.
Lower Prescription Costs for Retirees
Over the past 5 years, prescription costs for the group plan’s 824 retirees have had a negative trend and are lower now than in 2017—improving the fund’s financial stability.
Mitigated Risk for the Fund
The premium rate lock-in also mitigated risk for the fund, reducing uncertainty and ensuring a predictable cost structure
