Employee Benefits
Unbundled Approach Means Big Healthcare Savings for Smaller Companies
81%
Proposed Rate Increase
4% Less
Actual Cost vs. Prior Year
$0
Out-of-Pocket on $45K Rx
Industry
Professional Services
Employees
53
Entity
Corporation
Ownership
Private
Location
Kansas
Challenge
An 81% rate increase that threatened to break the budget.
When renewing health insurance benefits for 2021, the client’s insurer returned an 81% rate increase driven by high-risk medical conditions and prescription drug costs. This was prohibitively expensive for a 53-person firm, so they turned to Cornerstone to find a better path forward.
53
employees at a private Kansas firm — exactly the size that gets hit hardest by standard-market renewals.
Did You Know?
Small businesses pay 8%–18% more than large firms for the same coverage. The “unbundling” approach creates customized plans that cost less and work harder.
Solution
A fully unbundled plan built from three specialized components.
Cornerstone explored the non-standard market and built a fully unbundled plan around three components, plus reference-based pricing for hospitals:
1
Third-Party Administrator (TPA)
Manages claims processing, day-to-day benefits admin, and employee wellness education.
2
Self-Funded Insurance + Stop-Loss
Provides catastrophic claims protection while maintaining cost flexibility for the employer.
3
Pharmacy Benefit Manager (PBM)
Handles pharmaceutical claims and leverages manufacturer discounts to slash drug costs.
Outcome
Real savings, real impact.
Wellness Incentive
Employees who complete an annual physical get their deductible reduced by $1,000 — encouraging prevention and controlling long-term costs.
Prescription Savings
One employee’s $45,000/yr prescription was obtained at NO COST through the PBM’s manufacturer discount programs.
“
The unbundled approach didn’t just save us money — it gave us a plan that actually fits how our business works. We went from an 81% increase to paying less than the year before.
— Client, Professional Services Firm
Facing a similar challenge?
Let Cornerstone build a custom solution for your business.