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    • Who We Are
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    • Contact Us
    • CBG in the News
    • Links & Resources
Custom Benefits Group
  • Home
  • Who We Are
  • Benefits Proposal
  • Benefit Solutions
  • Our Team
  • Case Studies
  • Contact Us
  • CBG in the News
  • Links & Resources

Case Studies

Case Study 1:

Trakk Industries Corp. decided to interview several brokers after receiving a 27% rate increase for their Group Health Insurance. Trakk Industries Corp. is a 224 person manufacturer of high-end surveillance equipment with locations in six different states. After our initial meeting with the firm, we were granted a 'Letter of Authorization', which allowed us to obtain experience and plan design history from their current Provider.


Based on our analysis, we observed that 80% of their large claims being incurred by approximately 20% of their population. We requested a claim report that showed the number of participants that incurred up to and over $1,500 in claims. Based on two years of data, we were able to demonstrate that if the employer offered a Healthcare Reimbursement Account (HRA), the account would likely eliminate the 27% increase and actually experience a 1% reduction in rates:


A. Current Premiums: $2,078,881

B. Renewal Premiums: $2,640,178 (27% Increase)

C. Premiums with $1500 Deductible: $1,865,811

D. HRA Liability: $1,500 x 152 Singles = $228,000 | $3,000 x 71  Families = $213,000 = $441,000 (Worst Case)

E. Expected Liability: $178,000 (Expected)

F. C + E $2,043,811 (-1% Renewal )


The savings that the account received by offering a $1,500 Deductible Plan (applicable to In-patient Admissions; Out-Patient Surgeries; and Advanced Diagnostic Testing) along with an HRA plan negated the increase and landed us the account.

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