Back to Case Studies
Case Studies Labor Union
About the Client
Customer name:
Cleveland Bakers & Teamsters Health & Welfare Fund
Location:
Ohio
Industry:
Baking & Transportation
Challenge
An Ohio-based multi-employer Health and Welfare Fund faced dramatic cost increases for their retiree health plans due to rising healthcare costs and a growing retiree population. With ballooning costs eating over $30 million in funds, retiree healthcare benefits needed to be more sustainable for the Fund and its members. Canceling benefits was not an option. The Fund knew that, by switching coverage from its traditional medical plan to a group Medicare Advantage plan, it could cut costs and retain the same benefits. However, making the change would be an administrative burden and still require a hefty out-of-pocket expense for retirees.
“Working with RetireeFirst has completely transformed the funding of our plan as it relates to retiree healthcare. They have been a valuable partner for over ten years, from designing to implementing to managing our Medicare retirement benefits. They do all of this while guaranteeing quality retiree benefits that are still affordable.”
Carl Pecoraro, Fund Chairman, Cleveland Bakers & Teamsters Health & Welfare Fund
Solution
With these challenges in mind, RetireeFirst reviewed the Fund’s current plan, contacted the carrier directly, and provided an option that would significantly reduce costs, preserve the quality of benefits retirees were promised during their working years, and take the stress out of the process—all before being officially hired.
50% Cost Reduction
Cut cost for retirees by half in partnership’s first year, and reduced costs to $10 or $20 per month without sacrificing the quality of benefits
0% Increase Negotiated
Negotiated 0% increase for the first year of the partnership
$10.6 Million in Premiums Paid Back to the Fund
Increased gain share in conjunction with reduction of retiree benefits costs, enabling the Fund to set aside profit for future use; $10,589,206 in premiums have been paid back to the Fund as of 2025
Ensured No Premium Increases
Ensured cost of retiree health plan premium has stayed under what the Fund was originally paying since taking over the plan in 2014
