Management Consulting
Aon
Full Credential Description
A large professional services firm in China faced escalating medical coverage costs due to unrestricted benefits and rising premium rates. As costs became unsustainable, the firm recognized the need for a new approach to balance expenses while minimizing potential negative impacts on employee retention. Aon conducted a thorough analysis of benefits utilization and company data, focusing on employees' choices regarding medical treatments and their financial capacity to absorb risks. The findings indicated that while minor illnesses had low perceived value due to easy access to general practitioners, emergency surgeries held higher value due to limited employee discretion and financial capability. To address these challenges, Aon implemented a tailored solution that included cost-sharing measures, network management, and benefits optimization based on perceived value. This strategic redesign led to a significant reduction in costs, achieving approximately a 20% decrease in medical expenses for the client. In India, a large multinational organization encountered declining participation in its flexible benefits program, which was exacerbated by high medical inflation and financing risks. Aons consultants recommended expanding the range of optional medical benefits, enhancing diversity and inclusion support, and introducing wellbeing initiatives. These changes successfully boosted participation rates in the benefits program, allowing the employer to exert more direct control over investment through flexible spending credits. In Singapore, a multi-industry organization struggled with rising medical inflation and suboptimal claims utilization, which threatened the sustainability of its comprehensive international plan. Aon utilized data analytics to identify key cost drivers and employee needs, leading to the design of a new framework that integrated core and flexible benefits along with a wellbeing strategy under a local plan. This careful change management ensured that the transition did not adversely affect talent attraction and retention, allowing the organization to maintain its competitive edge while managing costs effectively.