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The Best Practices Guide: Cutting Health Care Costs

How SAE International saved nearly $50,000 a year—without cutting benefits

Like many not-for-profit organizations, SAE International counts primarily on employee benefits to attract and retain employees. But keeping those benefits within their budget isn't easy. "The cost of benefits keeps going up, but our budget does not," says Carole Faust, benefits and payroll manager at SAE International.

Fortunately, the organization's efforts at controlling health care costs have paid off—to the tune of almost $50,000 in savings.

Replacing their customized health plan with a standard plan cut their costs by $30,000 a year. The switch also made administration easier. "We can now enter changes and new enrollments via an employer portal rather than sending it to the provider and having them enter it," says Faust. Open enrollment materials and the benefit booklet are also available online.

The organization's wellness program also made a big difference, accounting for a $19,000 reduction in expected claims. Started in 1986, SAE International's wellness program now includes:

• A comprehensive lifestyle program. Employees can earn $100 by completing the program's five steps—completing a pledge, participating in a health risk appraisal, scheduling appointments for preventive care, participating in two lifestyle improvement programs and accessing a self-care guide on the provider's Web site.
• 24-hour health line. SAE International's health plan provider gives employees 24/7 phone access to a medical expert to ask questions about their health issues.
• A wellness committee. This group of SAE International employees coordinates and promotes many of the organization's wellness efforts.
• On-site Weight Watchers. "We've offered the Weight Watchers program for more than 10 years. And because it's been so successful, employees are still losing weight and a lot are on maintenance. We have one employee who lost 25 pounds last year and lowered her cholesterol," says Faust.
• Group exercise programs. SAE International sponsors walk-a-thons, 5K runs and other exercise competitions.
• Wellness webinars. The company's employee assistance program (EAP) offers these monthly educational webinars free.
• Wellness accounts. Employees receive $70 in a wellness account each year. They can use this money for any wellness activity (health club memberships, a fitness class, even new workout gear).

"The biggest thing you can do is provide programs and an environment that promotes healthy lifestyles overall," says Faust. "That will have the biggest impact on your health savings. Healthier employees will incur fewer claims, and fewer claims will result in lower costs."

"Healthier employees will incur fewer claims, and fewer claims will result in lower costs."
– Carole Faust, benefits and payroll manager, SAE International

What can you learn from SAE International?

• Switching to a standard plan can offer big savings—and easier administration.
• Wellness programs cut health care costs over the long term.
• Employee assistance programs (EAPs) may offer free wellness resources.

About SAE International

Find out more about their benefits in SAE International's winner profile.