July Case Study: Education Client Saves $237,287 Using The Difference Card
Using our proprietary MERP (Medical Expense Reimbursement Plan) strategy, The Difference Card helped an education client build the most cost-effective healthcare plan for their July renewal.
The client was receiving a 46.5% renewal increase from Humana. The firm’s Health Insurance Broker engaged The Difference Card to help with a solution to reduce this renewal and IMPROVE benefits to staff.
Our Mid-Atlantic Team was ultimately able to save this customer $237,287 off their health insurance costs and reduce their 46.5% renewal down to 17.8%.
This company has about 160 employees with 109 enrolled in the Health Plans. Their current benefits strategy included two plan offerings – a Gold Copay Plan & a Silver H.S.A. Plan.
By moving this company to two Bronze Plans and allowing them to stay with the same health insurance carrier, The Difference Card was able to reduce the fixed insurance premiums by more than 40% for this customer.
The HSA plan was kept qualified to allow members to continue to contribute towards their savings goals.
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 two plan offerings as they offered today, and enhanced benefits for employees.
Employees saw a decrease in office visit copays, which encouraged them to receive the preventative care they needed.
Many Difference Card customers look for financial protection when taking on the risk of paying claims for their employees. This Education Customer decided to purchase The Difference Guarantee insurance policy, which capped the group’s utilization liability and guaranteed the savings to their company.
The end result was $237,287 in net savings for this education client, while improving benefits.
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“Maintaining the benefits and the network options was essential to this group for their teachers and staff. Even with a large renewal, our solution made this a reality and helped to reduce overall fixed costs as well. In addition, it really helped us to have a broker partner that supported us and their client during implementation”.
David Lauritzen, Senior Consultant, Mid-Atlantic
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 its proprietary MERP strategy, The Difference Card helped an education client save $237,287 and reduce a Humana renewal increase from 46.5% to 17.8%.
- The company (about 160 employees, 109 enrolled) was moved from a Gold Copay and Silver HSA to two Bronze plans while staying with the same carrier, cutting fixed insurance premiums by more than 40%.
- The HSA plan was kept qualified so members could continue contributions; plan designs were rebuilt by Data Analysts and Underwriters with a conservative claims forecast and benefits were enhanced.
- Employees saw lower office-visit copays to encourage preventive care, and the client purchased The Difference Guarantee insurance policy to cap utilization liability and guarantee the savings.
- The Difference Card reports average employer savings of 18% on health insurance and invites employers to find a regional consultant or request a proposal to learn potential savings.
