Eaton Apothecary is a Massachusetts-based retail pharmacy chain of 22 worksites and nearly three hundred employees.
Our workforce is diverse; comprised of professionals earning six figures, high school students earning a little spending money, and a lot of people in the middle. Approximately half of our workforce is full time, and slightly over one hundred employees require health insurance from the company.
Like all other employers, individuals and governments, Eaton Apothecary has struggled to provide top-notch benefits to its employees in the wake of rapidly escalating health insurance costs. As managers, we are constantly watching how every decision will impact our people and our bottom line and have found it difficult of late to strike a favorable balance.
In 2007, we faced a moderate 7.5% increase from Blue Cross Blue Shield of Massachusetts, our carrier of over a decade. This increase would for the first time put our projected annual health insurance spend over a million dollars – a milestone certainly not to be celebrated.
Our previous approach to cost containment was to simply allow our broker to manage the percentage increase; maybe tweak some copayments here and there to save a few dollars and keep pace with inflation. We assumed increases were inevitable and that we were doing all that we could to provide quality benefits to our employees at the lowest cost.
We were wrong.
In November 2007, we were introduced to Jim Edholm of Business Benefits Insurance Brokerage, Inc. Seven weeks later, on January 1, 2008, our employees have a better plan than ever before and the company is saving nearly $130,000 in calendar 2008!”