Case Study | Star Group

Star Group and the Drive for Employer and Employee Savings

INDUSTRY:

Advertising/Marketing/PR

WORKFORCE:

240 benefits-eligible employees

PLAN TYPES:

PPO; HRA introduced in 2015

Thanks to ALEX:

  • 80% enrollment in the new HDHP with HRA
  • 10% overall cost savings for Star Group
  • 30% overall costs savings for Star Group employees

The Problem:

Until 2015, Star Group offered their employees a choice of two PPOs: one with a high deductible ($1,000 for singles), and one with a lower deductible ($500 for singles). Their employees tended to just pick the plan with the lower deductible and re-enroll in that plan year after year. In a quest to help their employees save money, Star Group replaced the lower value PPO with an HRA plan that had a $3,000 deductible.

The Plan:

Star Group didn’t think a chart comparing the PPO and HRA would help employees choose between the plans. Instead, they enlisted ALEX to interview each employee about their personal situations and provide recommendations on their best-fit plans.

The Outcome:

Thanks to ALEX’s ability to describe why someone would want to use one plan type over another— including the financial implications for doing so—80% of Star Group employees enrolled in the HRA plan, resulting in a 10% overall cost savings for Star Group and a 30% savings for employees.

“We really wanted to bring some savings to the table for the staff, so we created a wellness program and introduced a health plan option that substantially lowered their contributions. To make sure everyone really understood the value of both the buy-down plan as well as the wellness program, we brought in ALEX.”

Lisa Tamborello

Senior Vice President of Human Resources; Star Group

“Great tool. Simple to use and easy to understand.”

Employee, Star Group

“We had anticipated a lower level of enrollment, but once ALEX started communicating with employees and letting them know about our wellness incentive, the number went up. The projected savings for both Star Group and Star Group employees are substantial.”

Lisa Tamborello

Senior Vice President of Human Resources; Star Group

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