Funding Models in Group Insurance: How One Company Saved $350K on the cost of their Group Benefits (Part 2) – Episode #12 – The Vita Talks HR and Benefits Podcast

It started like so many stories do: a large employer, 600+ employees, managing benefits directly with an insurer for two decades. On the surface, everything looked fine.

But when a long-overdue audit finally happened, the results were eye-opening.

In Part 2 of our conversation with John Cochrane, founder of JD Consulting, we reveal how this company uncovered $350,000 in savings by reevaluating their group insurance funding model—and still maintained the protection they needed.

Spoiler: they had been overpaying for risk they weren’t exposed to.

In this episode, host Gianna Ricciardi and John walk through:

• How to assess real risk using historical claims data
• What does it mean to “absorb fluctuation,” and how to protect against catastrophic claims
• When it makes sense to shift from refund accounting to an Administrative Services Only (ASO) model
• Why reviewing your funding structure every 3 years should be the norm, not the exception

Whether you’re an HR lead, CFO, or benefits advisor, this episode will challenge how you think about cost, risk, and long-term planning.

In this episode, we cover:

✔ What do underwriting and funding arrangements mean in group insurance

✔ Key differences between fully insured, refund accounting, and ASO models

✔ Why understanding risk tolerance is essential for long-term plan sustainability

✔ The advisor’s role in guiding clients through funding model evaluations

✔ When and why employers should audit their current benefits structure

Thanks for being part of our Vita Assure community.

Until next month.