GROWTH & EFFICIENCY | CASE STUDY
How Ellingson Contracting Increased Enrollment 21% While Lowering Cost Per Enrolled Contract by Nearly 7%
A benefits redesign that allowed more employees to participate while improving the value generated by every benefit dollar.
21% MORE
ENROLLMENT
19 → 23 enrolled contracts
~7% LOWER
EMPLOYER COST PER ENROLLED CONTRACT
~$11,211 → ~$10,448
$23.5K INVESTED
ANNUALLY IN ADDED EMPLOYEE FINANCIAL PROTECTION
Before: The Existing Program
- 19 enrolled contracts
- Approximately $213,000 in annual employer medical spend
- $2,000 individual deductible on the traditional PPO
- 30% coinsurance
- Up to $9,000 in individual annual out-of-pocket exposure
- Opportunity to improve employee affordability and financial protection
After: The Redesigned Program
- 23 enrolled contracts
- 21% increase in enrollment
- Approximately $10,448 employer cost per enrolled contract
- $0-deductible copay plan option added
- HSA-compatible option preserved
- Approximately $23,500 annually invested in additional employee financial protection
More Employees Participated. The Cost Per Enrolled Contract Went Down.
The Challenge
In September 2025, Ellingson Contracting was spending approximately $213,000 annually on its medical benefits program.
Nineteen contracts were enrolled, and employees participating in the traditional PPO still faced a $2,000 individual deductible, 30% coinsurance, and as much as $9,000 in annual out-of-pocket exposure.
The opportunity was not simply to find a lower premium.
It was to determine whether Ellingson’s existing benefit dollars could support greater participation, provide stronger employee protection, and create more value for every dollar the company invested.
The Redesign
Through the Benefits Efficiency Review, Cody evaluated the structure of Ellingson’s program rather than looking only at the renewal price.
The analysis included:
- Funding structure
- Plan design
- Employer contributions
- Employee affordability
- Deductible and out-of-pocket exposure
- Opportunities for additional financial protection
- Long-term efficiency as participation increased
Ellingson ultimately implemented a $0-deductible copay option, preserved an HSA-compatible choice, and added financial protection designed to reduce the impact of larger healthcare expenses on employees.
The Impact
Enrollment increased from 19 to 23 contracts – approximately 21% growth.
Total employer cost increased from approximately $213,000 to $240,312, or about 12.7%, while enrollment grew substantially faster.
As a result, employer cost per enrolled contract declined from approximately $11,211 to $10,448 – a reduction of nearly 7%.
At the same time, Ellingson invested approximately $23,500 annually in additional employee financial protection.
The company was not simply spending less or spending more.
It was getting more value from each benefit dollar.
What Does a More Efficient Benefit Dollar Make Possible?
More Employees Can Participate
A benefits program creates more value when more of the workforce can actually use it.
Employee Costs Become More Predictable
A $0-deductible copay option can reduce uncertainty around everyday healthcare expenses.
Employees Receive Greater Financial Protection
Additional protection can help reduce the financial disruption caused by larger healthcare expenses.
Company Dollars Work Harder
Enrollment grew faster than employer spending, allowing Ellingson to support more employees at a lower cost per enrolled contract.
Benefits decisions affect more than premiums and deductibles. They influence whether employees can seek care, protect their savings, and recover from an unexpected medical event without destabilizing their family’s finances.
What Changed for Ellingson & Its Employees
For Ellingson
- Approximately 21% more enrollment
- Nearly 7% lower employer cost per enrolled contract
- Improved value generated by each benefit dollar
- Approximately $23,500 invested annually in added employee protection
- A benefits structure better positioned to support workforce growth
For Employees
- Access to a $0-deductible copay option
- Continued access to an HSA-compatible plan
- More predictable healthcare costs
- Additional protection from larger medical expenses
- A program designed to protect more of the employee’s paycheck
Could Your Benefits Program Support More Employees Without Cost Growing at the Same Rate?
A Benefits Efficiency Review examines more than the renewal percentage. It looks at participation, employer spending, employee affordability, plan design, financial exposure, and how effectively every benefit dollar is being used.
The first step is understanding whether the dollars your company already spends could be producing a better outcome.