Healthcare strategy for North American automotive manufacturer

A North American automotive manufacturer was spending billions of dollars on healthcare for hourly and salaried active employees and retirees. Total costs were rising much faster than annual inflation rates. Incremental programs had some impact, but the client wanted to identify a comprehensive and systematic strategy to reduce costs sustainably.

Strategy& undertook a thorough assessment of actual costs and drivers. The team then comprehensively identified opportunities by stakeholder group to manage demand, improve supplier effectiveness, better utilize technology, better purchase, and proactively influence the public policy debate. The project identified alternative scenarios and strategies that enabled the client to significantly reduce projected future cost increases.