THE KAPCO STORY
TAKING OWNERSHIP IN EMPLOYEE HEALTH
Increasing health insurance costs have become the norm for most companies. But in 2014, Kapco was faced with an increase that would keep any CFO up at night.
To address the underlying causes of this increase, Kapco partnered with HNI to create a 5-year gameplan that elevated Kapco's ownership stake in results. Three years into the plan, not only has Kapco halted cost increases, but they are providing better and more convenient care to employees.
A PLAN TO DE-RISK
The ultimate goal was for Kapco to have the option to go self-funded within 5 years. The first step in this journey was to address the current year's cost increase and to help employees more effectively navigate the confusing healthcare system. To do this, Kapco moved to an ACO (Accountable Care Organization). Then, in accordance with the gameplan, Kapco began taking more ownership in its employees' healthcare decisions and encouraged employees to do the same. An HSA option and an onsite nurse were introduced to employees in an effort to help employees obtain quick and efficient healthcare.
At first, these additional benefits were not fully utilized, so Kapco provided employees with opportunities to learn more about the plans and services available to them. Doing so has improved education and driven increased enrollment in the HSA program, as employees are becoming increasingly comfortable with their abilities to make informed healthcare decisions. Additionally, utilization of the onsite nurse continues to increase. Over the next 12-18 months, Kapco is planning to expand the breadth of its onsite clinic services.
BOOSTED PERFORMANCE
Kapco has not only avoided further premium increases, but 2017 premiums are a reduction over the previous year. The goal of becoming self-funded is 2 years ahead of schedule and has already become a viable option.
"Employee benefits are now a strategy for growth, instead of just a line item expense."
Paul Krejcarek, CFO
We believe in the power of risk ownership and becoming less dependent on insurance.
We believe that awesome benefits can be the catalyst to an employer brand that stands out as a great place to work.
We believe that leadership makes or breaks an organization. Live up to your potential.