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Taking a Chance on Innovative Health Benefits Drives Cost Savings, Inclusivity at Nonprofit Organizations

Next in Nonstop’s “Benefits Like a Boss” podcast, John Chiang, former CFO of Asian Health Services, and Ardell Butler, former CFO of Unity Healthcare, share their own stories at their respective nonprofit organizations.

Dispelling the False Tradeoff Between Financials and Employee Wellness

Chiang acknowledges the rising costs of healthcare can have a troubling impact on the nation’s lowest-paid employees, many of which selflessly serve at nonprofits. That’s why Chiang turned to Nonstop Administration and Insurance Services, Inc. — to introduce fellow leaders at Asian Health Services to a potential alternative and winner versus traditional health benefits design.

A few years ago, at Unity, Butler was concerned about the organization’s unbalanced budget. The organization faced double-digit increases in health insurance costs — costs they feared they would have to pass on to employees.

Nonstop presented opportunities to overcome both organizations’ challenges. For example, at Asian Health Services, “the CFO, HR director, and COO went through the benefits,” says Chiang. “[That was] important to me, because healthcare spend alone and benefits are typically nearly 30% of the cost of employee compensation — a very significant spend.”

Overcoming Disbelief to Realize Cost Benefits and Employee Inclusivity

The idea that Nonstop would both drive cost savings and eliminate upfront costs for employees seeking care seemed “too good to be true” for both organizations’ stakeholders. “But in order to maintain staff satisfaction, we needed to do something to put money in staffs’ pocket,” says Butler. “It was an opportunity to invest in staff that year and the upcoming year, where otherwise we weren’t able to do so.”

After deep analysis, Chiang and his team realized Nonstop would drive more than a 12% premium savings — roughly $350,000 savings before even counting out-of-pocket savings for employees. “Bottom line is, we felt the rewards were far greater than the risk,” says Chiang. “They have been very successful.”

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The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources believed to be reliable, but there is no guarantee as to its accuracy. This communication does not constitute a legal opinion and should not be relied upon for any purpose other than its intended educational purpose.

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