Success Stories: Blue Cross

Blue Cross and Blue Shield of Louisiana aligns plans and cuts commission overpayments by $22 million

Serving more than one million people, Blue Cross and Blue Shield of Louisiana (BCBS of LA) has a distributor network of over 2,500 producers.  As health insurance costs rose, the producers, who were being paid a percentage of premiums, were getting pay raises at a very rapid pace, and the company's system could not be easily changed to eliminate the problem.

To address the issue, BCBS of LA hired Synygy, with expertise in both the design of broker commission plans and the design of processes to manage the plans, to redesign and then automate new processes with sufficient flexibility to enable BCBS to rethink the design of their broker commission plan.  This gave BCBS of LA the ability to easily and quickly implement desired plan changes. Now, broker commissions are aligned with sales effort rather than premium increases, and BCBS of LA has the ability to maintain an alignment as their strategy changes over time.  This directly resulted in savings of $5 million in the first six months and over $22 million in savings in the second year-an ROI of over 400% on the cost of the Synygy solution.

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