RENEWAL RESCUE | CASE STUDY

How Half Moon Turned a 21.3% Renewal Increase Into 13.3% Lower Employer Cost

A benefits redesign that reduced employer spending, expanded participation, and lowered the financial burden on employees.

$35,832 SAVED

Compared with the proposed renewal

$117,354 → $81,522

5 MORE

Employees covered

18 → 23 employees

$428 LESS

Monthly family contribution

$936 → $508

Before: The Existing Program

  • 18 covered employees
  • Approximately $94,840 in annual employer cost
  • $500 individual medical deductible
  • $1,250 individual out-of-pocket maximum
  • Deductible and coinsurance exposure
  • $936 monthly employee contribution for family coverage

After: The Redesigned Program

  • 23 covered employees across both plans
  • Approximately $81,522 in annual employer cost
  • $0 medical deductible on the primary plan
  • $0 medical coinsurance on the primary plan
  • Reduced medical cost exposure through the redesigned structure
  • $508 monthly employee contribution for family coverage on the primary plan

More Employees Covered. Better Protection. Lower Employer Cost.

The Challenge

Half Moon was facing a 21.3% renewal increase from its incumbent carrier on a comparable Platinum medical plan.

Had the company accepted the renewal, projected annual employer cost would have increased from approximately $94,840 to $117,354.

At the same time, employees participating in the existing primary plan faced a $500 individual deductible, coinsurance exposure, and a family contribution of approximately $936 per month.

The question was not simply how to negotiate a smaller increase.

It was whether Half Moon’s existing benefit dollars could be redesigned to create a better outcome for both the company and its employees.

The Redesign

Through the Benefits Efficiency Review, Cody evaluated the underlying structure of Half Moon’s benefits program rather than treating the 21.3% renewal increase as the starting point for negotiation.

The review considered:

  • Employer spending
  • Employee participation
  • Plan design
  • Deductible and coinsurance exposure
  • Employee payroll contributions
  • Opportunities to improve financial protection
  • How benefit dollars could be deployed more efficiently

The resulting structure included a primary plan with a $0 medical deductible and $0 medical coinsurance, while providing employees with access to two plan options.

The redesign also substantially reduced the employee contribution required for family coverage on the primary plan.

The Impact

Instead of increasing to approximately $117,354 under the proposed renewal, Half Moon’s annual employer cost decreased to approximately $81,522.

That represents approximately:

  • $35,832 saved compared with the proposed renewal
  • 30.6% lower cost than the renewal
  • $13,318 less than the company’s previous structure
  • 13.3% lower employer cost than before the redesign

And those savings did not come from covering fewer people.

Enrollment increased from 18 to 23 employees.

At the same time, the monthly employee contribution for family coverage on the primary plan fell from approximately $936 to $508 — a reduction of $428 per month.

The company spent less. More employees participated. Employees received stronger financial protection.

What Can Happen When You Redesign the Program Instead of Accepting the Renewal?

More Employees Can Participate

Half Moon increased participation from 18 to 23 covered employees while simultaneously reducing employer cost.

Employer Spending Can Go Down

The redesigned program cost approximately $13,318 less annually than the company’s previous structure — and $35,832 less than the proposed renewal.

Employees Can Keep More of Their Paycheck

Family contributions on the primary plan declined by approximately $428 per month, creating meaningful savings for employees choosing family coverage.

Financial Exposure Can Be Reduced

The primary plan eliminated the medical deductible and medical coinsurance exposure, creating a more predictable healthcare experience for employees.

A renewal percentage tells you what the existing structure may cost next year.

It does not tell you whether the structure itself is the best use of your benefit dollars.

What Changed for Half Moon & Its Employees

For Half Moon

  • Approximately $35,832 saved versus the proposed renewal
  • Approximately $13,318 less than the previous annual employer cost
  • Employer cost reduced approximately 13.3% from the prior structure
  • 5 additional employees covered
  • Greater value produced by the company’s benefits investment

For Employees

  • Family contribution on the primary plan reduced by approximately $428 per month
  • Access to a primary plan with a $0 medical deductible
  • $0 medical coinsurance on the primary plan
  • Greater predictability around medical expenses
  • More employees able to participate in the benefits program

Facing a Difficult Renewal? The Renewal Percentage May Not Be the Real Problem.

A Benefits Efficiency Review looks beyond the increase presented at renewal.

It examines employer spending, employee contributions, participation, plan design, financial exposure, and whether the dollars already being spent could be structured to create a better outcome.

Request a Benefits Efficiency Review

The goal isn’t simply to find a cheaper renewal.

It’s to make every benefit dollar work harder for the business and the people it covers.