How a company cut health spending by nearly half

AXIOS February 8, 2024
Tina Reed

In an era of rising health costs, it almost sounds too good to be true: A midsized Montana-based company managed to nearly halve its per-person health spending in just five years, without dropping benefits.

Why it matters: Pacific Steel & Recycling’s success in wrestling down its health spending provides a case study of how employers can cut costs, but CEO Jeff Millhollin said the effort also demonstrates why it’s harder than needed for most companies and workers.

Details: The complicated endeavor included a deep dive into insurance claims data, cutting ties with traditional provider networks and having frank conversations with employees about potentially challenging sacrifices.

• The steel-recycling company, which has roughly 900 employees across 10 states, is self-insured, meaning...

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