PE Firm Saves Over $800,000 on Health Renewals

January Case Study: Florida-Based Private Equity Firm Saves Over $800,000 by Utilizing The Difference Card!

January 9, 2024

Using The Difference Card’s proprietary funding strategy, The Difference Card helped reduce the cost of a Florida-based private equity firm on their January 1st healthcare renewal. The client was receiving a 14.5% increase from their current carrier when their broker turned to The Difference Card for help with controlling costs.

Our Southeast Team worked with the group and their insurance broker to save this customer -17% on their health insurance costs and reduce their +15% increase down to -5% below current. The client implemented the Difference Card’s Guarantee solution, which provides a maximum liability, in order to ensure $821,829 in guaranteed savings.

This firm has over 600 participants in their triple-option plan design, where the benefits strategy included both in network and out of network benefits.

By moving this group to one lower-cost plan within the same network and carrier, the Difference Card was able to fund the difference in each plan to reduce their overall cost. Compared to renewing as-is, the group actually improved their employee’s out of pocket expenses.

Our team of Data Analysts and Underwriters reviewed the benefits, employee census, and plan rates and came up with a conservative forecast of claims utilization. After benefits were built back to the original dual-option by using The Difference Card Strategy, the net renewal was $369,000 less than last year’s health insurance costs.

Many Difference Card customers look for financial protection when taking on the risk of paying claims for their employees. This firm, who specializes in a wide range of funding, from sports and entertainment to aviation, decided to purchase The Difference Guarantee insurance policy, which capped the client’s liability and guaranteed their savings as opposed to self-insuring and risking much higher costs.

“This company was facing a large renewal increase and did not want to move carriers and needed to have a set monthly budget. We were able to get their cost down to a manageable level, monthly fixed cost and improve the benefits for employees. In addition, we are administering their HSA, consolidating carrier billing providing a streamline experience for both the employer and employees.”

Oldemar Da Silva, Senior Consultant

The Difference Card helps employers in all industries, not just private equity, to save an average of over 18% on their health insurance costs, while often improving benefits and the experience for employees.

To learn how much The Difference Card can save you, find a consultant in your region or request a proposal today.

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