The client experienced severe adverse selection in their health plan each year. As the cost of the health plan rose, less of their employees participated. Granted a set amount of fringe benefits each hour worked, employees saw the cost of the health benefit program offered by their employer and opted instead for a retirement contribution in lieu of benefits. Being self-insured, the problem compounded over the years until the cost of the program exceeded the hourly benefit allotment provided by the government. The program in general was neither valued by the contractor or the employees, and a change needed to be made.