Boston Warehouse Trading Corporation
Company		Founded in 1974, Boston Warehouse has been creating trend-forward merchandise for Retailers for over 30 years. Headquartered in Norwood, MA, Boston Warehouse employs over 50 professionals.
Management Partners		Peter Jenkins, President		Donna Wisnaskas, HR Director
Situation			Objective
Boston Warehouse has had a long tradition of rich, first dollar, PPO benefits, insured in recent years by Blue Cross Blue Shield of MA. In 2002, BW absorbed a 13.5% rate increase. However when BCBS raised rates by another 16% in 2003, something had to change: Cut benefits? Double employee cost? Limit freedom of choice?			Reduce or eliminate 2003 cost increase Reduce later year cost increases to single digit level Maintain rich, first dollar benefits Retain 100% freedom of choice Stay with current carrier
Results			Boston Warehouse Plan Cost History
BW adopted the Benemax Wrap BW took $3,000 claims cost risk per member Benefits & carrier remained unchanged First year impact: 1% savings vs. 16% increase Four year trend through 2006 = 4.3% per year