Client Description

A Tacoma, Washington-based nonprofit organization with 150 employees,  serving the community since 1918


A local nonprofit, the organization had faced consistently increasing medical plan costs for its employees year after year, burning through funding that could have been used to support its charitable mission.

The client wanted to reduce the costs of its benefits program without cutting benefits. They had an existing brokerage relationship that wasn’t effective in keeping costs within the nonprofit’s limited budget. Each year the costs increased. Additionally, the client’s request to restructure benefits to encompass two years instead of one went unheeded. Instead, the prior broker advised the client to renew as-is each year, regardless of percentage increase from the carrier.


Berg Benefits developed a two-year, two-phase plan:

  • Year 1 renewal
    • Phase 1: Expansive search and negotiation with Life and Disability carriers for the same coverage but lower rates
    • Phase 2: Negotiation with dental carrier to reduce cost while keeping benefits the same or better
  • Year 2 renewal
    • Phase 1: Focused on high-cost claimants to ensure the employer-based benefits program was providing the right coverage for their needs
    • Phase 2: Negotiated costs with stop loss insurance with the existing carrier


  • Year 1 results
    • Reduction of Life and Disability benefit costs by 25% while maintaining the same coverage
    • Reduction of dental benefit costs by 30% while increasing benefit coverage
    • $250,000 in saving with first year plan
  • Year 2 results
    • 0% increase in any rates with all carriers. This had never happened for this client and previous brokers in over 10 years!
    • Medical plan expenses utilized 40% of projected budget after year one

Among the many services this non-profit provides is meals and resources for homeless and at-risk populations. Saving money on fixed operational costs such as its employee benefits plan allows more funds to be directed back into the community and put toward mission-critical activities serving those in need.