🎂 If you thought the cake was creative, you should see what we can do with your benefits

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Prepared for Nashville Symphony Association

The cake was sweet, but the next part will be music to your ears.

We pulled your actual plan data and put your medical cost per employee next to your peer group's. There is more distance between the two than there needs to be, and most of it is addressable.

Cost per participant, 2022 to 2025

Your cost is rising almost twice as fast as the market you buy in.

You, per participant. Up 30.3% in three years. The market over the same three years, . Up 17.9%.

Your figures, from your own reported benefits data, for the four plan years ending 2022 through 2025. The market line applies the national rate of change over the same period, per the KFF Employer Health Benefits Survey.

Plan year June 1 – May 31  ·  renews June 1, 2026
5 contracts  ·  150 covered on the medical plan  ·  160 total participants  ·  fully insured

Scroll down for more

Your numbers

What the data already says about you.

Here is what your own data reports, unedited. The gap at the top of this page did not appear all at once. This is the twelve months that opened it, and the numbers underneath it.

Your last twelve months

+15.0%

cost per participant, in one year

−4.7%

people covered, same year

Total premium

$1.40M

all lines, five contracts

Covered participants

142

↓ 7 people (4.7%)

Premium per participant

$9,035

↑ 15.0% in one year

Total participants

160

at the start of the plan year

Medical, dental and vision

$1.28M

91% of the total

Broker compensation

$94.2K

at 6.71% of premium

Plan administration fees

$642

low

Funding

Fully
insured

every year, 2021–2025

$112,000

more premium than the year before, for seven fewer people.

Last year against the year before it

The trend

Fewer people. More money.

Between last year and the year before it you covered seven fewer people and paid $112,000 more. That is the whole story of this page in one sentence, and it is drawn entirely from your own data.

Reported premium Covered participants Tap a year for the detail

Source: your own reported benefit figures, trended across four plan years. Premium per participant is reported premium divided by active participants at the end of the same year.

30.3%

climb in what you pay per participant since 2022.

$6,933 then · $9,035 now

Every one of these cost trends is reversible. They are a set of decisions, and almost all of them are still yours to make.

Where it goes

Your costs are in the claims.

Administrative costs are only about 15% of your plan. The overwhelming majority of every premium dollar you spend is claims, and claims are the line where employers tend to have the least transparency.

85¢

of every premium dollar is claims. That is where the money actually is.

Federal floor for large group, ACA medical loss ratio

The difference between a company's health plan that functions well and one that functions poorly is how well it manages the claims.

$1,088,000

of your $1.28M medical premium is claims spend at the 85% floor. Drag the slider to see the range.

Claims & quality
15%

Claims dollars

$1,088,000

Everything else

$192,000

A 5% claims reduction

$54,400

A 10% claims reduction

$108,800

Medical loss ratio floors: 45 CFR Part 158 and ACA §2718, 80% individual and small group, 85% large group. See KFF, NAIC and HealthCare.gov. Dollar figures apply the ratio to your $1.28M health carrier line, which also carries dental and vision and excludes your other ancillary lines. These dollar figures illustrate the arithmetic only. Your own results will differ.

What are the most competitive plans doing?

They implement solutions and strategies that improve access to care for their employees while obtaining those services at a lower price point, by sourcing claims more efficiently.

They do it two ways. They customize the plan around what their own claims data shows, with enough transparency to monitor it and adjust in real time as the plan's needs change. And they implement strategies that give employees the same experience or a better one than they have today, while the claims behind that experience are sourced at a lower cost.

The playbook

How best in class companies get lower costs and better coverage.

The Fortune 500 plans with the lowest cost per employee also carry the lowest deductibles. They got there by changing how care and drugs are purchased. Three levers, all documented, each with the employer named.

01

Their pharmacy contract shows what the drug actually cost.

Traditional pharmacy benefit managers make money on the spread between what a drug costs and what your plan is billed, and on rebates calculated off the highest list price available. That is why the expensive version stays on the formulary. Employers who moved to pass-through contracts or bought direct saw the price collapse overnight. Below, two of them. The top bar is what a conventional plan pays, the middle bar is what a well-run plan pays for the same molecule, the bottom bar is the acquisition or cash floor.

Johnson & Johnson

Express Scripts · ERISA suit, D.N.J. 2024

An employee sued her own employer's plan over generic pricing. The audit found the plan was paying an average of 498% over acquisition cost across the whole specialty generic category.

Paid for one generic script$10,239.69
Available for$28.40
Average markup, category wide498%

JPMorgan Chase

CVS Caremark · ERISA suit, 2024

The same drug, a smaller quantity, a different plan, the same pattern. Plaintiffs identified 366 separate generics on the formulary carrying margins above 211% over real acquisition cost.

Billed for a 30 day supply$6,229
Public acquisition cost$11.05
Generics above 211% margin366

The biosimilar arbitrage

Coherus · Cost Plus Drugs · SmithRx

When Humira lost exclusivity, plans on rebate-driven contracts kept the expensive original on formulary to protect rebate income. Plans on pass-through contracts switched and took the discount immediately.

Humira list, per month$6,922
Yusimry biosimilar, direct$569.27
Reduction, no rebate needed92%

02

One agreed price covers the whole operation.

Rates for the same operation vary by as much as 40% inside a single market with no relationship to quality. Large employers responded by contracting fixed prices for the whole episode, surgeon, hospital, anesthesia, devices, physical therapy and any complications, at a short list of named institutions. The savings turned out not to come mainly from the discount. They came from the surgeries that stopped happening.

Walmart

Mayo Clinic · Geisinger · Cleveland Clinic · Virginia Mason

Travel, lodging and the full cost covered for the employee and a companion, with no deductible and no copay. Go outside the network instead and the employee carries 50% to 100% of it. When spine patients were re-evaluated at Mayo or Geisinger, most of them turned out not to need surgery at all.

Spine surgeries avoided after review54%
Saved per avoided operation~$30,000
Bundled price when surgery was needed$32,177
Faster return to work3 weeks

Lowe's

Cleveland Clinic · Johns Hopkins Bayview · Kaiser Irvine

Started with cardiac surgery at Cleveland Clinic in 2010, at no out-of-pocket cost to the employee, then joined Walmart, McKesson and JetBlue to build a shared network for joint replacement, bariatric and spine procedures.

Saved on orthopedic and spine episodes10–15%
Saved on maternity bundles20%
Saved on transplant episodesup to 59%
Employee deductible on these$0

What the bundle took out, by type of episode.

Every bar is a reduction against the same care bought the conventional way, fee for service, at a hospital chosen by proximity rather than by outcome. The top bar is the one that surprised people: more than half the spine patients sent for a second read did not need the operation at all.

Spine surgeries avoided entirely after a second readWalmart · Mayo, Geisinger

54% never happened

Transplant episodesECEN network

up to 59% saved

Maternity, full longitudinal bundleECEN network

20% saved

Orthopedic and spine episodesLowe's, Walmart, McKesson, JetBlue

10 to 15% saved

Bars are scaled to the size of the reduction. The Walmart bar is a different kind of saving: not a cheaper operation, but no operation. Avoiding one unnecessary spine procedure saved roughly $30,000, which is why the bundled price of $32,177 when surgery genuinely was needed still came out ahead.

03

The contract sits directly with the health system.

Instead of accepting whatever network rates an insurer negotiated, these employers went to the hospital system themselves, agreed a total cost target and a set of quality measures, and left the insurer to process claims. If the system beats the target it shares the savings. If it misses, it carries part of the loss. The employees got cheaper premiums and free primary care out of it.

General Motors

Henry Ford Health · ConnectedCare · 24,000 employees

Nineteen quality metrics and an annual cost ceiling. Savings split 50/50 with the health system, losses shared if the ceiling is breached. Blue Cross kept only claims processing and the out-of-area network.

Under its cost target, year one17%
Under target, year two14%
Employee premium cut, family$860–$1,980
Copay on preventive and primary care$0

Boeing

UW Medicine · Providence‑Swedish · 30,000 lives

Contracted with two competing accountable care networks in the same region rather than one, so the two had to compete on value. Later extended to South Carolina and St. Louis.

Total cost of care−10 to 15%
Employee premium cut, family$800–$1,080
Cost of primary care and generics$0
Employer HSA contributionHigher

Walt Disney

Orlando Health · AdventHealth · 70,000 employees

Contracted directly with both dominant systems in Orlando at once and tied payment to preventive outpatient management. In a market that concentrated, that was the only way to hold rate increases down.

Insurer margin in the middleRemoved
Regional rate increasesContained
Systems contracted2

The market went up. These employers went down.

Same years, same medical inflation, same carriers in the market. The difference is who wrote the contract. The red bar is what the average employer absorbed. Everything below it is what a direct agreement produced instead.

Cost reducedCost increased

The average employer · Mercer national survey, 2026

+6.7%

General Motors · Henry Ford, year one, against target

17% under

General Motors · Henry Ford, year two, against target

14% under

Boeing · UW Medicine and Providence‑Swedish

−10 to 15%

The gap between the top bar and the ones below it is roughly 24 points of annual cost movement. On a $1.4 million premium that is the difference between paying $94,000 more next year and paying $200,000 less.

And the employees paid less, not more.

This is the part that separates a real cost strategy from a cost shift. Between 53% and 59% of employers are covering their increase by raising what employees owe. These employers cut it.

Average deductible, HSA planThe market

$2,481

Average deductible, PPO planThe market

$1,064

Primary care, generics, and surgery at a center of excellenceGM · Boeing · Walmart · Lowe's

$0

On top of that, payroll premiums fell: $300 to $900 a year on single coverage and $860 to $1,980 on family coverage at General Motors, $360 to $400 and $800 to $1,080 at Boeing.

Σ

What the three levers add up to.

Employers running the conventional model are heading into 2026 at the highest cost per employee in fifteen years. Employers running the levers above are spending less than half of that, while charging their people less at the point of care.

The market · average cost per employee per year

$17,496 → $18,500+

Mercer's national survey: $17,496 in 2025, up 6.0%, and above $18,500 in 2026, up 6.7%. The steepest rise in fifteen years. Between 53% and 59% of employers are passing that increase to employees through higher deductibles.

Best in class · direct contracting, fiduciary pharmacy, advanced primary care

$7,800 → $11,500

Rosen Hotels sits near the bottom of that band at roughly $7,800 per employee, about 55% below its sector, with no deductible, $0 generics on nine out of ten scripts and more than $400 million saved cumulatively. A separate Milliman review of 207,000 lives across 26 large organizations found advanced primary care cut emergency visits by 40% and total claims by $2,434 per employee per year.

The same thing per employee per month

$1,458 → $1,541

Against $300 to $650 for populations running on direct primary care and direct contracts. A difference of $800 to $1,100 per employee every month.

Best in class, per employee per month

$300 → $650
40–55% lower total cost, while employees pay less out of pocket, not more.

None of these three levers requires you to be Walmart.

They require a different contract, not a bigger company. Pass-through pharmacy pricing, bundled surgical episodes, direct agreements with a health system, and payment tied to a published benchmark. Every one of them is available to an employer your size. They are simply not offered very often, because the intermediaries in the current arrangement are paid out of the gap.

Sources: Senate HELP Committee testimony and Pacific Business Group on Health for the Employers Centers of Excellence Network results; Harvard Business Review and Becker's for the Walmart spine and bundled pricing figures; 4sight Health, the American Medical Association and Becker's Payer for General Motors and Henry Ford ConnectedCare; Washington Health Care Authority and Senate HELP for Boeing; Clarivate Decision Resources Group for Disney; Lewandowski v. Johnson & Johnson, D.N.J. 3:24‑cv‑00671 and Stern v. JPMorgan Chase for the pharmacy figures; DrugPatentWatch for the biosimilar pricing; Mercer for the market cost per employee; Health Rosetta for Rosen Hotels; Premise Health and Milliman for the advanced primary care portfolio review. Cost per employee per year is a total plan cost measure and is not the same basis as your own premium per participant figure, so the two are not directly comparable.

Your cohort

Sixteen employers who look like you.

The curve at the top of this page came from here. We built a peer group matched on all three axes that matter: arts, entertainment and recreation, Southeast region, 100 to 249 employees. Sixteen organizations came back close enough to compare. Below is what the rest of their plan design looks like next to yours.

Top 15% of your cohort, per participant. What the best-run plans in your peer group pay.

Cohort median, per participant, blended across coverage tiers. The middle of your sixteen.

You, per participant. Below your cohort median, but a year above the top 15% across 142 participants.

Medical plan design — your cohort against national
ElementYour cohortNational
Offering multiple plan types53%34%
Employer contribution, single75%81%
Employer contribution, family63%69%
Deductible, single$2,212$2,218
Deductible, family$4,397$4,320
Max out‑of‑pocket, single$5,105$5,036
Max out‑of‑pocket, family$10,210$10,071
Average HSA funding, single$468$458
Average HRA funding, single$1,575$1,878
Ancillary offer rates
BenefitCohortNational
Dental71%71%
Vision89%89%
Short‑term disability72%69%
Long‑term disability76%72%
Life insurance85%83%
Critical illness57%62%
Accident65%67%
Employee assistance program76%79%
Retirement — per person, per year
ElementCohortNational
Employer contribution$873$1,738
Employee contribution$1,271$3,507
Participation rate55%–
Admin expenses, bps52.348.5
Auto enrollment17%37%
Allows loans38%82%
Wellness program40%36%
Consolidated PTO35%46%

Source: peer group benchmarking report prepared for Nashville Symphony Association by Dan Harwood. Cohort: arts, entertainment and recreation, Southeast, 100 to 249 employees, 16 matched employers. The top 15% figure is derived from the reported quartiles and blended across coverage tiers. Full comparison universe 75,000+ employers, refreshed quarterly.

Three things the cohort says about your market.

53%

of your peers offer multiple plan types, against 34% nationally. Arts organizations compete on benefits, while contributing 6 points less than national on single and family both.

6.44%

industry unemployment in your cohort. Hiring is not the constraint right now, which makes benefits a retention and cost problem rather than a recruiting arms race.

91%

say they are likelier to apply to an employer with award‑winning benefits. 89% to one transparent about them. 75% would change jobs for better medical coverage.

The market

What's coming at your renewal.

Your plan year runs June to May, so your next renewal lands mid‑2026. Every major forecaster landed in the same uncomfortable band this cycle, and Tennessee is running hotter than the national picture.

What BlueCross filed for Tennessee employers in 2026

~13%

Tennessee Department of Commerce and Insurance filings, via The Tennessean. UnitedHealthcare topped 12%.

Tennessee premiums are on track for their steepest climb in

15 yrs

Affecting an estimated 3.7 million people on employer group plans statewide. The Tennessean.

Projected rise in U.S. employer health costs for 2026

9.5%

Pushing past $17,000 per employee, a third straight year near double digits. Aon, September 2025.

What employers expect after cost‑reduction measures

6.5%

Still the steepest rise since 2010, and nearly 9% for employers who take no action. Mercer, 2,010 employers.

Sources: Aon; Mercer National Survey of Employer‑Sponsored Health Plans; Tennessee Department of Commerce and Insurance rate filings via The Tennessean; BCBST.

The two engines behind those numbers

Both are moving in the same direction, and both are addressable.

Specialty drugs: under 5% of prescriptions, over 60% of pharmacy spend.

Specialty cost per member per year, and where the projections put it. The driver has shifted from price per claim to utilization, which means more of your people on specialty drugs every year.

60%+

of total pharmacy spend in 2026, from under 5% of prescriptions.

+32%

further projected climb in gross specialty cost per member by 2028.

$476,200

average newborn and infant care claim. For a plan your size, one claimant reshapes the year.

Sources: Pharmaceutical Strategies Group / Artemetrx State of Specialty Spend and Trend; PSG Trends in Specialty Drug Benefits; Drug Topics; Sun Life stop‑loss book of business. The 2025 figure applies the reported 12.5% gross increase; the 2028 point is PSG's projection.

GLP‑1s: the fastest‑moving line in the budget.

Share of total employer claims taken up by GLP‑1s prescribed for weight loss. This is the line that has moved fastest in the shortest time, and the one where the channel you buy through matters most.

$4.34 → $27.23

cost per member per month, 2022 to early 2025. A sixfold move in under three years.

28% → 43%

of the largest employers covering them, in a single year.

29%

of employers now report GLP‑1s at more than 15% of their annual claims.

Sources: International Foundation of Employee Benefit Plans, share of total annual claims (6.9% in 2023, 8.9% in 2024, 10.5% in 2025); WTW for cost per member per month; Peterson‑KFF Health System Tracker for coverage among firms with 5,000 or more workers. In your own cohort, 15% offer GLP‑1 access today.

The design question is no longer cover or exclude. It is which channel the plan pays through. Wegovy lists around $1,349 a month and Zepbound around $1,086, while manufacturer direct pay sells Zepbound from $299 and Wegovy from $199, with the oral form from $149. Both manufacturers now run direct‑to‑employer programs that route around the PBM entirely. The spread between those channels is several hundred dollars per member per month.

The record

In this system, everybody earns more when you pay more.

Insurers and the middlemen between them and the pharmacy are paid out of what your plan spends, which means the incentive runs the wrong way. These three are matters of public record, and all three ended up on your bill.

Federal Trade Commission · January 2025

$7.3 billion above what the drugs actually cost.

The three largest pharmacy benefit managers marked up specialty generics at their own affiliated pharmacies by hundreds and sometimes thousands of percent. One drug was marked up more than 7,700%.

FTC second interim staff report, voted 5–0 to release · ftc.gov

ERISA litigation · filed 2024

$10,239.69 for a drug you can buy for $28.40.

A Johnson & Johnson employee sued her own employer over the price its health plan paid for one generic prescription. Group health plans are now targets for the same fee litigation that reshaped 401(k) governance twenty years ago.

Lewandowski v. Johnson & Johnson, D.N.J. 3:24‑cv‑00671 · Georgetown litigation tracker

Claims adjudication · reported 2023

300,000 denials. 1.2 seconds each.

One carrier's review system let company doctors reject claims in batches without opening patient files. The reporting triggered a congressional inquiry and multiple class actions. The carrier disputes the characterization.

ProPublica and The Capitol Forum · House Energy & Commerce inquiry · propublica.org

Background

A short history of your plan.

Looking at five years of your data, your plan did not drift. It moved. Your medical carrier changed, your ancillary carrier changed, and the broker of record changed.

2021 – 2023

UnitedHealthcare carries the medical.

Reported at $979.07K, $944.19K, then $1.03M. Ancillary sat with Reliance Standard Life, moving from $17.73K to $89.96K to $103.19K.

2024 — the switch

BlueCross BlueShield of Tennessee takes the medical. UNUM takes the ancillary.

BCBS of TN goes from $54.2K to $1.17M. UNUM goes from zero to $112.84K. UnitedHealthcare and Reliance Standard both drop to zero.

2025

First full year on the new lineup.

BCBS of TN at $1.28M, now 91% of total premium. UNUM at $121.17K across AD&D, life, short and long term disability, critical illness and accident. Five carriers in force.

2025 — broker of record

A new name appears on the commission line.

Kevin S Smith, $76.1K, first year on record. Benefits Solutions Group of Nashville continues at $18.7K, up from $16.99K. The Benefit Companies of Nashville, which had drawn between $19.13K and $63.77K over the four prior years, drops to zero.

Who sent the cake

Twelve miles from the Schermerhorn.

Benefit Leader is in Brentwood. We work the same Nashville carrier market you do, with the same BCBS of Tennessee network and the same TDCI rate filings. This outreach was deliberate. We read your numbers first, and we sent a cake because a cold email would have been worse.

What we actually do

We bring the cost containment mechanics large corporations have used for decades down to employers in the 100 to 250 range. Claims level analysis, PBM contract review, funding strategy. Which is exactly your cohort.

How we get paid

A fixed commission from the insurance carrier, the same way your current broker is paid. We never charge you more than you are already paying, and we put a money back guarantee behind reducing your cost. If we cannot do it without cutting benefits or degrading the employee experience, we say so and go away.

14%

average client savings, without reducing benefits.

Across Benefit Leader's book of business

Four recent plans.

50%

saved at renewal while improving the benefits, for a 400‑employee property management company.

$1.6M

saved on prescriptions for a 700‑person medical group.

26%

saved for a 450‑employee behavioral healthcare company.

12%

saved for a 2,300‑person municipality, by changing one thing.

What our clients say

Benefit Leader in the media

Click any one to watch.

If you thought the cake was creative, you should see what we can do with your benefits.

Pick a time that suits you.

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Contact us

Dan Harwood

Benefits Advisor · Nashville

dan@benefitleader.com
615‑905‑1616
License 3003447255

Eric Calciano

Insurance Services

eric@benefitleader.com
858‑255‑0407
License 17195037

Benefit Leader

Brentwood, Tennessee

5141 Virginia Way, Suite 440
Brentwood, TN 37027
1‑888‑996‑2363

Rather just talk? Call 615‑905‑1616.

On the numbers. Every figure attributed to Nashville Symphony Association comes from your own reported benefits data. Cohort benchmarks come from the peer group report prepared for you. Market figures are cited inline to their original publisher. Where a number is a model rather than a reported actual, we have labelled it as such.

Nothing on this page is a quote, an offer of coverage, or legal, tax or actuarial advice. Any savings figure describes past results for other employers and is not a prediction for your plan. GLP‑1 and drug pricing in particular is changing month to month, and we would verify live figures before any decision.

Prepared for Nashville Symphony Association · Benefit Leader, Inc. · not indexed, not shared