Providing Meaningful Benefits after an Oil and Gas Division Purchase
This oil and gas start-up purchased a small division of a large multinational oil and gas company.
As part of the purchase agreement, they would continue to provide employment to the new employees and give them similar levels of compensation, including benefits.
Due to the change in size and ownership, they couldn’t just continue paying premiums, they had to find their own benefits program.
Larger companies gain more favourable attention from insurance companies. This often means better coverage, greater customization, lower costs, and greater support.
The significant change in the size of the company created several challenges:
- Having access to comparable benefits. It wasn’t a matter of being able to afford some coverage items, it truly was a matter of having access to them. Some of the coverage they had on the previous plan was typically only available to 100+ employee companies.
- Being cost-effective. The drop in size meant a surplus cost of 10%-20% for similar coverage.
- Making a streamlined transition without gaps or overlaps.
How NextGen Helped Them:
These types of situations are always unique, but by following our process we were able to help this company and deliver on every need:
- Through the combination of leveraging buying power and relationships with strategic controls and amendments, NextGen Benefits was able to design a plan that the employees felt was an improvement over their previous benefits program.
- As our division who specializes with large businesses can attest to, just because you’re a big business it doesn’t mean you have the right efficiencies in place. That was the case here, their old plan had outdated systems, coverage, and controls. NextGen implemented the right workable innovations to their benefits plan and helped them achieve better costs.
- This is where we give credit where credit is due. Our managing consultants and admin team handled this beautifully! No gaps or overlaps in coverage and the company's employees preferred a new online, phone and app benefits claiming system.