At Relation Insurance, we’re all about building lasting partnerships. When one of our hospitality clients — a thriving hotel group based in Atlanta — came to us looking for ways to rein in their rising employee benefits costs, we knew there was a smarter, more sustainable way forward with a self-funding employee benefits plan.

The Client: A Long Standing Hotel Group in Atlanta

A well-established hospitality group headquartered in Atlanta, GA, operating within a competitive and service-driven industry. With a workforce of 2,200 employees — 800 of whom are enrolled in the company’s benefits plan — the organization generates $250 million in annual revenue and is focused on providing exceptional guest experiences while maintaining operational efficiency and financial sustainability.

The Challenge: Large Claims Consisentely pushing up Renewal Costs

For more than a decade, this hotel group had been fighting an uphill battle. Each year brought another round of fully insured cost increases, which they tried to manage through plan design changes and switching carriers. It wasn’t just exhausting — it was expensive.

Large claims consistently pushed up renewal costs, and Affordable Care Act (ACA) rules limited their ability to pass those increases on to employees. With 800 employees on the benefits plan, even small cost shifts had a major impact.

It was time for a change.

Our Solution: A Strategic Approach to Transforming Their Plan

Working closely with their team, Relation recommended a shift to partial self-funding — a move that would give the company more control, transparency, and long-term savings.

We implemented:

• A business analytics tool to identify areas of waste and cost avoidance

• A strategic third-party administrator (TPA) to carve out large claims and perform thorough claims audits

• An Rx carve-out strategy, allowing access to rebates and better pricing through group purchasing and stronger contract negotiations

• A BUCA Network as a wrap to ensure broad access and provider flexibility

This was more than a cost-cutting exercise — it was a complete transformation of how they approached employee benefits.

The Results: Significant Cost Savings 

The results speak for themselves:

• Over $1 million saved through carve-outs alone
• 94% of fully insured claims were found to be auto-adjudicated and never audited
• Additional 3–5% in savings from TPA audits uncovering duplicate claims and billing errors

Even in a worst-case scenario where claims hit the maximum, the new structure protects the bottom line far better than the fully insured approach ever could.

Your Partner in Smart Benefits Planning

At Relation Insurance, we believe your benefits strategy should be as bespoke as your business. If you’re feeling the pressure of rising costs and cookie-cutter insurance plans, let’s talk. We’ll work with you to find solutions that make sense — for your people, your goals, and your budget.

Ready to explore your options?

If you’re looking to create a benefits package that reflects your company values and employees’, while advancing your business goals, we’re here to help. Let us be your partner in building solutions that work today and for years to come.

Find a Location today to explore how Relation Insurance can help your business succeed.