How a 2,500-Employee Manufacturer Saved $1.4M in Year One Using MRF Benchmarking
A Midwest manufacturer used SumHealth's BenchMarks platform to discover their TPA rates were 23% above market median — and renegotiated their ASO agreement to capture over $1.4M in savings.
The Challenge
A 2,500-employee manufacturer in the Midwest was self-insuring its employee health benefits through a major national TPA. Leadership suspected their plan costs were higher than peers but lacked the data to prove it or act on it.
The Approach
Using SumHealth’s BenchMarks platform, the company’s benefits team pulled negotiated rate data for their top 50 procedures by claim volume — then compared their plan’s rates against the market median for the same procedures, same payer, same geography.
The analysis revealed their TPA rates for orthopedic procedures — their highest-cost service line — were running 23% above market median.
The Outcome
Armed with this benchmark data, the benefits team entered ASO renegotiation with their TPA. The renegotiated contract delivered:
- $1.4M in projected first-year savings across orthopedic and surgical DRGs
- A new performance guarantee clause tied to market benchmark adherence
- Quarterly reporting requirements that keep the TPA accountable to rate competitiveness
The analysis took three days. The renegotiation took six weeks. The savings were immediate.
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