February Case Study: Non-Profit Saves $1,222,747 on Renewal & Improved Benefits Using The Difference Card
Using our proprietary MERP (Medical Expense Reimbursement Plan) strategy, The Difference Card helped a non-profit create the most cost-effective healthcare plan for their February renewal.
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The client was receiving a 10% renewal increase from Blue Shield of CA. This non-profit’s Health Insurance Broker engaged The Difference Card to help with a solution to reduce this renewal IMPROVE benefits to staff.
Our California Team was ultimately able to save this customer $1,222,747 off their health insurance costs and reduce their 10% renewal down to -12.5%.
This company has about 350 employees with 318 enrolled in the Health Plan. Their current benefits strategy included two options: a Platinum PPO Plan, and a Gold PPO Plan.
By moving this company to a Bronze Level PPO Plan option, The Difference Card was able to reduce the fixed insurance premiums by almost 35% for this customer.
Our team of Data Analysts and Underwriters reviewed the employee information and came up with a conservative forecast of claims utilization.
After benefits were built back to the original dual option benefit plans by using The Difference Card Strategy, the net renewal was -12.5% below current.
Many Difference Card customers look for financial protection when taking on the risk of paying claims for their employees. This technology customer decided to purchase The Difference Guarantee insurance policy, which capped the group’s utilization liability on a monthly basis and guaranteed almost a million dollars in savings versus renewing as is.
“This organization cares deeply about its employees, reflected in its rich employee benefits that greatly impact their recruitment and retention. As with most companies, continuously growing healthcare costs make it increasingly more challenging to maintain a high level of benefits while remaining cost-effective for employees. In this case, we were able to reduce their overall expenditure and enhance their plan design while reducing employee premium contributions. Employees were simply ecstatic during enrollment meetings with the enhanced changes.”
–Scott Bezanson, Senior Consultant at The Difference Card
The Difference Card helps employers in all industries to save an average of 18% off their health insurance costs, while often improving benefits for employees.
To learn how much The Difference Card can save you, find a consultant in your region or request a proposal today.
Key Takeaways
- Using their proprietary MERP (Medical Expense Reimbursement Plan) strategy, The Difference Card helped a non-profit create a more cost-effective healthcare plan for their February renewal.
- The Difference Card’s California team saved the customer $1,222,747 in health insurance costs and converted a 10% renewal increase into a -12.5% net renewal.
- The employer has about 350 employees (318 enrolled); by moving from Platinum and Gold PPO options to a Bronze PPO option, fixed insurance premiums were reduced by almost 35%.
- Data analysts and underwriters produced a conservative claims utilization forecast and rebuilt benefits back to the original dual-option design using The Difference Card strategy while achieving the -12.5% net renewal.
- The client purchased The Difference Guarantee insurance policy to cap monthly utilization liability, guaranteeing nearly $1M in savings versus renewing as-is; The Difference Card claims average employer savings of 18% while often improving benefits.
