Case Study
Delivery Stability and Advocacy When Health Plan Costs Spike
When rising healthcare costs threatened a construction company’s benefits strategy, Kraus-Anderson Insurance stepped in with advocacy, insight, and solutions tailored to their workforce.
Client Background
A family-owned construction company with more than 100 employees relied on its benefits program to support its workforce and remain competitive in a tight labor market. Leadership cared deeply about their people and wanted to provide access to high-quality healthcare while maintaining financial sustainability.
As the company grew and healthcare costs increased, their benefits strategy required more careful oversight and expertise to ensure the program continued to meet employee needs while protecting the organization’s long-term stability.
The Challenge
The company’s leadership team faced several challenges within their benefits program. First, a review uncovered compliance gaps and administrative issues tied to a previous vendor relationship. At the same time, the structure of their medical plan limited their carrier options due to the unique requirements of their workforce.
Compounding the issue, several high-cost medical claims including serious illnesses among leadership drove projected health plan increases to nearly 60 percent. Such a spike would have placed significant pressure on the company’s financials and the affordability of benefits for employees.
Objectives
Resolve compliance issues and strengthen
administrative oversight
Improve plan design to better support
employees and leadership
Control rising healthcare costs while
maintaining access to quality care
Build a long-term advisory relationship focused on
both business and employee wellbeing
Leadership needed a partner who could stabilize the program, resolve compliance concerns, and negotiate a more sustainable path forward.
Our Approach
Kraus-Anderson Insurance began by reviewing the company’s benefits structure and identifying compliance issues tied to their previous third-party administrator. The team worked with leadership to correct these gaps and stabilize the program.
Next, we conducted a market review of available carriers, identifying options that could support the company’s workforce requirements and prevailing wage environment. Drawing on strong carrier relationships, Kraus-Anderson Insurance advocated on the company’s behalf, presenting a clear picture of the workforce health profile and negotiating a medical plan structure better aligned with the organization’s needs.
Throughout the process, we served as a trusted advisor, helping leadership understand tradeoffs, evaluate options, and make informed decisions that balanced employee care with financial responsibility.
Outcomes
The results strengthened both the company’s benefits program and leadership’s confidence moving forward:
A redesigned medical plan better aligned
with workforce needs
Stabilized healthcare costs following
a projected major increase
Compliance issues resolved and
administrative processes improved
Greater confidence in long-term benefits planning
