Higher Education Institution serving 4,500+ students

May 19, 2021

Case Study: Strategy

Shepherd Insurance had the opportunity to partner with a new client. Client received a 42% increase on their fully insured medical and prescription drug plan representing $1,501,063 increase in costs.


How We Helped

Our team offered multiple approaches to assist in reducing expenses for this new client.

  • We secured, through an alternate carrier, a fully insured plan to reduce future plan expense by 18%.
  • We lead the client’s implementation of a medical expense reimbursement plan (MERP) that reduced fully
    insured premiums by an additional 24%. *A MERP allows the purchase of plans with higher deductibles,
    copayments, and out of pocket limits, while reimbursing employees for the additional liability. Employees
    are provided a debit card to receive services at doctor office visits, urgent care, pharmacies and emergency
    rooms that reduce their out of pocket spend at the time of service.
  • We implemented a Wellness program through the medical & prescription drug carrier that established and
    funded an employee health savings account for fulfilling wellness goals. Deposits were funded by the
    insurance carrier saving the client $196,500 annually.
  • We secured additional ancillary coverages through the medical and prescription drug carrier, which provided
    dental, vision, life, long-term disability and short-term disability resulting in a premium savings of $47,786
    for both employee & employer; also secured the client a $110,431 reduction to the medical & prescription
    drug premium through a “bundle discount”.