Happy Construction Employees

Case Study Industry: Construction

Industry: Construction
Number of Full-Time Employees: 59
Cost study period: October 2021 - September 2022
Total Annual Health Expenses paid by Employer: $563,223.64
Total Annual Savings with LASO Plus: $185,613.79

LASO Plus can deliver substantial, real-world savings in health expenses for businesses of all sizes. Take a look at the results from a recent case study with a small construction company in South Texas where the use of LASO Plus generated a projected annual cost savings of 33%!

Health expenses are getting the better of most employers. According to a study at KFF in (2021) executives at nearly 90% of the employers surveyed believed that the cost of providing health benefits to employees will become unsustainable in the next five or 10 years. Solutions have been hard to find for a long time. Recently, there have been some signs of improvement.

For example, telemedicine increased during the pandemic. However, in a 2021 JAMA study it was found that most telehealth visits involved mostly long-term care (77.2%) and almost no preventive (2.7%) care. Technology by itself is not the answer. The solution needs to involve both innovative technologies, scalability of the process, and driving down of the prices by eliminating the middlemen. This case study for LASO Plus shows the results on a small construction firm of 59 Full Time Equivalents (FTEs) in South Texas using this type of solution.

Total covered lives were 59 FTE members including 12 with a family plan adding an additional 62 dependents for a total of 121 covered lives. Average age of the employees was 35 years old, average dependent spouse’s age was 42, and average dependent child’s age was 12. In addition, the average mean salary was $86,587 and the median is $64,929.

Employer had several plans with deductibles ranging from $4,000 to $5,500 for individuals and $4,000 to $11,000 for families. The common Out-Of-Pocket (OOP) payments are $50 for a primary care visit, $75 for a specialist, $100 for urgent care, $300 for emergency room, 20% co-insurance for diagnostic/imaging tests, and $400 co-pay for an inpatient hospitals stay. The highest OOP limits were $8,150 ($16,300 if Out Of Network) for individuals and $16,300 ($32,600 if Out of Network) for a family. The employer covered 100% of the premium for the employees. The employer also paid premiums for a telehealth service for covered lives, but no other separate wellness benefits were available.

Total paid by the employer, during the plan year, including claims, admin fees, excess loss, and specialty benefits, was $563,223.64 during the October 2021 to September 2022 period (rounded up to $4.63 per hour). Note: this amount does include pharmaceutical costs which for the plan year were $136,770.70 for 268 prescriptions or $510.34 per script.

After evaluating the LASO Plus solution it was determined that the employer and employees save Direct costs (actual health expenses paid for the healthcare plan) and in addition the employer would save Indirect costs (business and health expenses avoided by implementing the LASO Plus plan and app):

Total Possible Savings from LASO+ Savings for Plan Savings for Members* Total Possible Savings
Direct $19,654.19 $10,881.13 $30,535.32
Indirect $108,329.01 $108,329.01
Pharmaceutical*** ~$60,000.00 ~$60,000.00
LASO+ Subscription -$2,369.41** -$2,369.41**
Total Possible Savings $185,613.79 $10,881.13 $196,494.92
Per FTE $3,145.99 $163.33 $3,330.42