LONG-TERM PERFORMANCE | CASE STUDY
How Littlefield Agency Lowered Employee Health Costs While Improving Benefits Over Three Years
A multi-year benefits strategy that produced lower employee-only premiums, a lower deductible, and less out-of-pocket exposure.
~8% LOWER
EMPLOYEE-ONLY MONTHLY RATE
$485 in 2023 → $448 in 2026
37.5% LOWER
INDIVIDUAL DEDUCTIBLE
$2,000 → $1,250
~$87K AVOIDED
ACROSS TWO DOCUMENTED RENEWALS
2025 + 2026 annualized avoided cost
Before: The 2023 Program
- $485 monthly employee-only rate
- $2,000 individual deductible
- $5,000 individual out-of-pocket maximum
- A traditional approach vulnerable to year-over-year renewal pressure
Three Years Later: The 2026 Program
- $448 monthly employee-only rate
- $1,250 individual deductible
- $3,000 individual out-of-pocket maximum
- Lower employee cost
- Stronger benefit protection
Three Years Later: Better Benefits. Lower Cost.
The Challenge
Like many employers, Littlefield Agency faced the reality that health insurance costs can change dramatically from one renewal to the next.
The challenge was not simply to find one unusually favorable quote.
It was to continually evaluate whether the existing program still represented the best use of the company’s benefit dollars — and whether employees were receiving enough value and financial protection in return.
That meant treating each renewal as an opportunity to reassess the program rather than assuming the carrier’s renewal offer was the only answer.
The Redesign
Through an ongoing Benefits Efficiency Review approach, Littlefield continued to evaluate its benefits program across multiple renewal cycles.
The analysis considered:
- Annual employer cost
- Employee premium rates
- Deductible and out-of-pocket exposure
- Available carrier and funding alternatives
- Plan design
- Employee financial protection
- Whether the existing program continued to provide enough value for the dollars being spent
The objective was not simply to select the cheapest plan each year.
It was to make the best decision available based on cost, benefits, risk, and long-term value.
The Impact
The results became especially clear across the 2025 and 2026 renewal cycles.
Littlefield avoided approximately $24,475 in 2025 and $62,816 in 2026 by evaluating alternatives to the renewal options presented.
~$87,000 in Annualized Avoided Cost
The selected programs also improved employee protection. From 2023 to 2026, the employee-only monthly rate decreased from approximately $485 to $448, while the individual deductible fell from $2,000 to $1,250 and the individual out-of-pocket maximum decreased from $5,000 to $3,000.
Littlefield was paying less for employee-only coverage than it had three years earlier – while providing employees better financial protection.
What Can a Long-Term Benefits Strategy Make Possible?
Lower Employee Costs
Employee-only coverage fell from approximately $485 per month in 2023 to $448 per month in 2026.
Better Financial Protection
The individual deductible declined from $2,000 to $1,250, while the out-of-pocket maximum declined from $5,000 to $3,000.
More Options at Renewal
Treating the renewal as an offer — rather than an automatic answer — creates an opportunity to evaluate carriers, funding arrangements, plan design, and other alternatives.
Better Decisions Over Time
One good renewal can help for a year. Continually evaluating the program can improve how benefit dollars perform over the long term.
Benefits strategy should not begin and end when the renewal packet arrives.
What Changed for Littlefield & Its Employees
For Littlefield
- Approximately $87,000 in annualized avoided cost across two documented renewals
- 2026 selected program cost approximately $62,816 less than the renewal presented
- Continued evaluation of the program rather than automatically accepting renewal terms
- Greater flexibility to assess cost, funding, and plan-design alternatives
- A benefits strategy focused on long-term value rather than a single renewal
For Employees
- Employee-only monthly rate approximately 8% lower than in 2023
- Individual deductible reduced 37.5%
- Individual out-of-pocket maximum reduced 40%
- Lower potential financial exposure when care is needed
- Better benefits without requiring a higher employee-only monthly rate
Your Renewal Is an Offer, Not Necessarily the Answer.
A Benefits Efficiency Review is designed to identify what is working, what is driving cost, and what may need to change before the next renewal.
Sometimes the right answer is a different carrier.
Sometimes it is a different funding arrangement or plan design.
Sometimes staying with the existing structure makes sense.
But you cannot make that decision without looking.
The goal is to understand where your benefit dollars are going and whether your business and employees are receiving enough value for what they are spending.
Figures reflect documented annual costs and enrollment associated with the renewal and selected program options presented during each renewal. Because enrollment changed between certain options, avoided-cost figures should not be interpreted solely as rate savings.