Case Study:

MN School District Achieves 35% Participation with Consumer Driven Health Plan

AssuredPartners Public Entities

Quick Facts

Industry: School District

Amount of Employees: 7,641 Employees (2,979 Teachers)

Type of Insurance: Self-Funded Health Insurance

Valued Client Since: 1995

Problem

A Minnesota school board wanted to provide an additional health plan option that encouraged medical consumerism, lowered family premiums, provided employees with more options, and reduced the district’s overall costs. Culturally, the employees were not used to paying a deductible so offering a new type of plan was going to be a big change for them.

Solution

The insurance benefit team came up a new consumer-driven health insurance option that offered reduced costs and lowered family premiums. Working with an AssuredPartners public entity benefit consultant, the plan was paired with a Funded Health Reimbursement Account (HRA) to make the plan more appealing and increase participation. Funds could be used for eligible medical expenses. Unused funds could roll-over and grow tax free – to be used for healthcare expenses on a rainy day or in retirement.

Results

Our consultant introduced the new plan option during several in-person employee presentations, resulting in a total of 6% participation, exceeding their initial 5% goal.

For the second year and subsequent years, the presentation was made into a short video. It’s been shown at benefit meetings, on the district’s website and emailed to employees. Enrollment has steadily increased each year. Today, over a third of employees have enrolled in the new plan.

Participation Results

Year 1 - 6%
Year 2 - 10.5%
Year 3 - 18.5%
Year 4 - 24.5%
Year 5 - 31.31%