How Precision NW Electric Saved 11% on Healthcare Costs

Angle Health

Rising health insurance costs can put small businesses in a difficult position. As premiums increase, employers have less room to invest in their employees.

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For Precision NW Electric, a 10-person electrical contractor in Portland, Oregon, healthcare costs were increasing roughly 20% annually. Owner Matthew Johnson needed a way to manage those expenses without sacrificing employee coverage.

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With help from his broker, Matthew switched to a level-funded health plan through Angle Health, reducing the cost of comparable medical coverage by an estimated 11%. The savings also gave him room to expand employee benefits.

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The Challenge: Rising Health Insurance Costs

When Matthew took over Precision NW Electric, the company’s health insurance costs were already putting pressure on the business.

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The latest renewal presented several challenges:

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- Higher monthly costs: Coverage for one employee was set to increase from approximately $440 to $541 per month.

- Significant employee expenses: The plan still carried a high deductible and out-of-pocket maximum.

- Less room for wage increases: Growing healthcare expenses limited what Matthew could invest in employee compensation.

- Higher operating costs: Rising benefit expenses could ultimately affect what the company charged customers.

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“It makes it harder to increase wages because it’s just another cost of human labor,” Matthew explained. He knew the company needed a more sustainable approach.

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The Solution: A Level-Funded Health Plan Through Angle

Matthew worked with his broker at Northwest Benefit Strategies to explore alternatives to the company’s existing coverage.

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They found a solution through Angle Health, which offers level-funded health plans for employers designed to provide predictable monthly funding and familiar health plan access, along with greater visibility into plan performance.

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For Precision NW Electric, the change meant comparable medical coverage at an estimated 11% lower cost than the previous plan. Matthew saw an opportunity to put those savings back into the business by improving the benefits available to his employees.

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The Impact: Lower Medical Costs and More Employee Benefits

Switching to Angle allowed Precision NW Electric to expand its benefits package while keeping medical coverage costs lower.

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The company was able to:

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- Reduce medical coverage costs by an estimated 11% compared with its previous plan.

- Begin contributing toward family coverage to provide employees with additional support.

- Add dental and vision benefits for the first time.

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Employees quickly began using the new benefits. One received a root canal he had postponed, while another visited the dentist for the first time in eight years. Matthew now spends slightly more on the overall benefits package because he chose to expand coverage. He sees that investment as a way to help attract and retain employees.

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“The network is bigger, the benefits are better, and the rates are lower.”

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What Other Small Businesses Can Learn

Precision NW Electric’s experience demonstrates how reviewing health plan options can create opportunities to manage expenses while offering employees more.

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For employers facing similar challenges, the case study highlights a few important considerations:

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- Look at the full benefits picture. Lower medical coverage costs may create room to offer additional benefits.

- Work closely with your broker. An experienced broker can help evaluate alternative funding options and identify plans suited to your business.

- Consider the value of employee benefits. Expanded coverage can support efforts to attract and retain employees.

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For brokers, Precision NW Electric provides an example of how a level-funded plan can help address a client’s cost concerns while supporting their employee benefits goals.

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See If Angle Health Is Right for Your Business

Angle Health works exclusively through brokers to help employers explore level-funded health plan options. If you’re looking for a way to manage healthcare costs while supporting your employees, talk to your broker about whether Angle could be a fit.