Self-Funded Companies Beat Market Trend — See Cumulative 2-Year
Decrease of 9% in Costs, $32 Million in Savings
MILWAUKEE –- Business Health Care Group (BHCG) self-funded member
companies saw a 2-year aggregate decrease of 9 percent per health plan member when compared to
2005 base year costs. In 2007 the self-funded member companies experienced a 6.1 percent increase
in medical costs (prior to benefit application) which is approximately 4 percent less than the
Milwaukee market trend.
This result, coupled with the 13.7 percent reduction reported for 2006
(restated to14 percent in 2007) produces a cumulative 2-year savings of $32 million for the selffunded
When taking into account southeast Wisconsin medical cost trend, the
program produced even greater savings, totaling an estimated $103 million.
An independent third-party research firm analyzed the data from all of the BHCG’s 18 self-funded
businesses – representing a total of approximately 55,000 health plan members. 2007 was the second
full year for the health plan offering called Humana Preferred, created by Humana to support the
BHCG’s goal of bringing southeast Wisconsin health care costs in line with the Midwest average.
“Manpower has tangibly seen the positive results in our bottom line since we’ve joined the BHCG,”
said Jeffrey Joerres, chairman and chief executive officer of Manpower Inc. “Working in the
employment services industry, we acutely understand the important work that the BHCG does in
helping lower benefit costs for the employer, as well as helping our employees take control of their
health care decisions.”
In 2007 self-funded companies accounted for approximately 65 percent of the 92,000 health plan
members enrolled in plans linked to Humana Preferred and its high performance network of doctors,
hospitals and other health care providers. Humana serves an additional 32,000 BHCG members in
plans tied to other provider networks, primarily outside southeast Wisconsin.
In 2006 the BCHG reported southeast Wisconsin costs were 26 percent higher than the Midwest
average and 2007 saw the gap close to 20 percent. “This positive report confirms that we are making
progress in solving the dilemma of affordable health care and the BHCG is looking forward to
continuing our efforts of bringing together employers, consumers and the medical community to
support the business environment of the southeast Wisconsin region,” said Dianne Kiehl, BHCG
The average episode of care cost for Humana Preferred network providers is 15 percent less than
non-Humana Preferred providers.
“Improved provider pricing, physician efficiency, a focus on
evidence-based medicine, and the use of Humana’s consumer transparency tools and the BHCG’s
consumer education modules, all contributed to the cost reduction,” added Kiehl. Kiehl noted that
benefit changes were not a factor since the comparison of costs was prior to benefit application.
While the current results reflect the experience of self-funded companies, fully insured BHCG
member companies are also benefiting from Humana Preferred and its 11 percent premium
advantage compared to Humana’s broader, regional PPO network. Humana Preferred includes 29
hospitals and approximately 4,000 physicians, representing about 85 percent of Humana’s regional
In all, more than 675 employers are now participating in the BHCG, including some of the area’s
largest and best-known corporations, as well as hundreds of small and mid-sized businesses.
Products like Humana’s No Worry plan, which caps annual premium increases at 6 percent or lower
over a three-year period, offer tangible ways for small and mid-sized firms to share in the BHCG’s
In southeast Wisconsin, No Worry is available exclusively through the BHCG.
About the Business Health Care Group:
The Business Health Care Group is a membership organization of more than 675 employers and
employer groups in the 11-county region of southeast Wisconsin. The BHCG and its members share
the common goals of moving the health care market through innovative action and partnering for
Visit www.businesshealthcaregroup.org to learn more.