Client: 

A large city government with multiple unions and 9,500 employees.

Problem:

The City had experienced above trend health care and prescription increases for several years.  The revenue base for this municipality was flat and City executives were concerned with how to finance future increases.  To complicate the issue, the city was in the middle of several multi-year labor contracts that established benefit and contribution levels.  The City administered a fully insured medical and prescription drug program.

Fedeli Solution:

The Fedeli Group’s employee benefit consultants conducted an RFP focusing on funding options, health care management, technology, network accessibility, customer service and prescription rebate programs.   Fedeli assisted with marketing, funding evaluations, executive summary, finalist selection and implementation.  Our firm was able to negotiate a two year fully insured premium for medical and a three year fully insured dental program.  In addition, The Fedeli Group recommended a partially self-insured, fully transparent and auditable prescription drug program.

Results:

The changes in vendor, funding and contract duration saved this city over $500,000 and returned substantial prescription rebates to the City.  Over two years, our firm was able to hold trend flat with single digit increase expectations going forward.