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January Case Study: Technology Client Saves $901,347 on Renewal!

January 9, 2023

Using our proprietary MERP (Medical Expense Reimbursement Plan) strategy, The Difference Card helped a technology company build the most cost-effective healthcare plan for their January renewal.

The client was receiving a 20% renewal increase from Cigna. The firm’s Health Insurance Broker engaged The Difference Card to help with a solution to reduce this renewal, while still delivering the same benefits to employees.

Our New York Team was ultimately able to save this customer $901,347 off their health insurance costs and reduce their 20% renewal down to an expected -4.2%.

This company has over 200 employees with 195 enrolled in the Health Plan. Their current benefits strategy included two Platinum Plans, and two Gold Plans.

“This client is an organization that genuinely values its employees. It is a priority for them to offer a rich level of benefits. As is the case with most companies, continuously growing healthcare costs make it increasingly more difficult to maintain a high levels of benefits while also remaining cost effective for employees. In this case we were able to reduce a +20% renewal increase to -4.2% below current costs without changing net benefits for employees and their families. They also decided to implement our Online Enrollment Software to streamline open enrollment for employees and take some of the administrative load off their HR team.”

Richard Halpin, Senior Consultant at The Difference Card

By moving this company to plans with higher deductibles and out of pocket costs with Cigna, The Difference Card was able to reduce the fixed insurance premiums by more than 32% for this customer.

Our team of Data Analysts and Underwriters reviewed the demographics of the group and came up with a conservative forecast of claims utilization. They built back to four plan offerings as they offered today, with lower overall out of pocket costs for employees.

The client had also expressed concerns of streamlining their clunky enrollment processes. They were using paper forms to collect employee’s benefit choices, and manually entering the enrollment into their payroll system and each carrier’s portal. Communication was key as most workers were remote, while allowing spouses to access their benefit information at their fingertips.

The Difference Benefit Admin System offers a year-round online enrollment system and includes the fulfillment of the elections to each Insurance Carrier and payroll system. DANNY, the interactive benefits guide, walks employees through their benefit choices and makes recommendations as to which plans they should enroll in based on their specific demographics. This was a win for the employer and the employee.

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 and guaranteed the savings to their company versus renewing as is.

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.

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