Chicago Technology Consulting Firm Reduces Healthcare Costs by Over $350,000 with The Difference Card Solution
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A leading information technology and cybersecurity consulting firm in the greater Chicagoland area faced a major challenge this November when Blue Cross and Blue Shield of Illinois delivered a +25% health insurance renewal increase.
With more than 130 employees enrolled and an annual healthcare spend of $2.9 million, this renewal would have pushed their total cost to over $3.6 million - a $700,000 increase that simply wasn’t sustainable for their organization’s budget or long-term benefits strategy.
Turning to a Trusted Benefits Advisor
To address this challenge, the company’s executive team partnered with their trusted benefits consultant at Cottingham & Butler, a national leader in employee benefits consulting and healthcare cost containment strategies.
The Cottingham & Butler team, experienced in working with The Difference Card and Lee Bowers, knew that leveraging a MERP strategy (Medical Expense Reimbursement Plan) could be a powerful solution to mitigate the renewal increase. Together, they collaborated to create a plan that reduced healthcare costs while maintaining employee satisfaction and access to care.
Designing a Smarter Healthcare Cost Containment Strategy
Lee began by reviewing the company’s existing benefit structure, which included three medical plan options:
- Two Health Savings Account (HSA) plans, each offering different provider networks and deductibles
- One Health Maintenance Organization (HMO) plan
Working in partnership with Cottingham & Butler and Blue Cross and Blue Shield of Illinois, the team designed a self-funded health plan strategy that preserved provider network access and employee plan choice while reducing fixed insurance costs by approximately $900,000.
Then, The Difference Card’s underwriting team implemented a customized MERP strategy through the Difference Guarantee program. This approach allowed the employer to replicate or enhance existing employee benefits while lowering total health plan costs - a proven method for sustainable healthcare cost containment.
Delivering Guaranteed Savings and Budget Predictability
The outcome was a significant reduction in the renewal increase from +25% down to +13%, resulting in over $350,000 in guaranteed savings for the technology firm.
To streamline accounting and provide cost predictability, the company selected The Difference Card’s Monthly Budget feature — a key component of the Difference Guarantee. This model ensures a fixed monthly payment for easy administration and offers the potential for additional savings if claim utilization falls below projections, since 100% of unused funds are returned to the employer.
Helping Technology Firms Take Control of Rising Healthcare Costs
At The Difference Card, we specialize in healthcare cost containment solutions that empower employers to manage rising health plan expenses without sacrificing the quality of employee benefits.
By partnering with us, technology companies and consulting firms nationwide are learning how to take control of healthcare costs using innovative tools like our MERP strategy, self-funded health plan models, and the Difference Guarantee - so they can focus on growing their business and supporting their people.
