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Home  |  Customers  |  Case Studies  
 
 
Health Care Cost Containment  
 
An Enwisen Customer Success Study  
 
   
  Customer  
 
MemorialCare
Memorial Health Services is one of California’s largest hospital groups with 6 hospitals, more than 9,900 employees and an annual payroll of $690M.  
   
  Summary  
  Study after study indicates that one of the most serious challenges facing senior HR executives is health care cost containment. At Memorial Health Services, a multi-tiered cost containment strategy resulted in Memorial’s ability to dramatically reduce healthcare costs for both Memorial and its 9900+ employees, allowed the lowest paid employees to be able to afford healthcare for their dependents, and moved the corporate culture to 100% online self-service, resulting in significantly reduced costs and increased employee satisfaction.  
   
  The Business Initiative  
  Memorial had a corporate strategic initiative to reduce its ever-growing healthcare costs while improving employee adoption of, and satisfaction, with, their benefit plans.  
   
  What They Did  
  Memorial developed a 4-tiered health care cost containment program that also included a detailed ROI analysis that helped us achieve buy-in from our C-Level executives. The four tiers included:  
 
Effective management of healthcare resources
Strategic revamping of their plan design
A move to a complete self-service environment for benefits enrollment and year-round usage
Effective communications and decision support for enrollment and ongoing healthcare adoption and usage – for this aspect they chose Enwisen’s AnswerSource Knowledge Center.
 
   
  Successful Execution  
  According to Patti Ossen, Senior Vice President of HR for Memorial, “We executed on our cost containment initiatives above and beyond expectations.” Ossen highlighted the following key successes:  
 
Accomplishing a 100% online, paperless enrollment. Says Ossen, “The Enwisen solutions helped even our unskilled workers to fully understand their plan options and costs. Those with little or no computer access in their jobs were able to access the system at home, with a spouse or dependent, or at internet cafes set up at all of our locations. The effectiveness of the communications contributed to 500 new employee and dependent enrollments. Additionally, the Enwisen solution helped us to be able to serve the more than 8,000 employees who enrolled in or changed benefits with only 2 service center staff.”
Reducing healthcare premiums – for both Memorial and their employees – by 10-30% depending on job status and benefits eligibility.
Holding Memorial’s overall increased benefits costs to under 4%, representing money saved as Memorial is a self-insured organization. Some specific examples include how Memorial reduced their workers’ comp costs to just 1.3% of total
payroll – which is significantly below the CA state average of 6.5%. With a self insured plan, this represented cash to the bottom line.
And, for the first time, significantly reducing premiums for Memorial’s lower paid workers ($17 per hour and under), thereby allowing many of these employees to enroll their dependents for the first time. The ROI projections for this increased enrollment was critical to achieving C-level buy-in for lowering premiums prior to the open enrollment period.
 
   
  For More Information  
  www.enwisen.com
(800) 685-5578x240