
January Case Study: The Difference Card Helps a New York University Reduce Health Insurance Costs by Over $4 Million While Enhancing Employee Benefits
A prominent New York university faced a significant challenge when its insurance carrier, Anthem Blue Cross Blue Shield (BCBS), proposed a 19% premium increase for January 2025. This would have pushed the university’s healthcare spending to over $14.6 million—exceeding its health insurance budget by $2 million. Seeking a solution, the university hired a new consultant to address this critical issue and partnered with The Difference Card team to craft a sustainable and cost-effective strategy.
Collaborating for a Breakthrough Solution
The consulting team at Risk Strategies was tasked with reducing costs while simultaneously improving benefits. To achieve this, they collaborated closely with The Difference Card’s Senior Consultant, Emily Coughlin Molloy. The team evaluated multiple options and selected a $5,000 deductible plan with Aetna, which lowered the university’s fixed health insurance premium by an impressive 33%. This change resulted in $5 million in immediate savings.
A portion of these savings was reinvested into The Difference Card’s innovative Monthly Budget Difference Guarantee program. The program customized a funding structure that enhanced benefits for faculty and staff by combining medical copay and deductible reimbursements. This approach reduced employees’ out-of-pocket expenses while improving their overall benefits package.
Seamless Administration and Employee Experience
The Difference Card’s advanced debit card technology, integrated with Aetna’s claims file feed, ensured a smooth administrative experience for university employees.
- Real-Time Access to Funds: The Mastercard provided point-of-sale access for employees, eliminating the need for them to pay upfront for additional copay amounts.
- Hassle-Free Reimbursements: For larger expenses, such as hospitalizations, the system’s file feed connection with Aetna enabled frictionless reimbursements without requiring employees to submit paperwork.
- Automatic Transaction Substantiation: This feature minimized administrative burdens, further streamlining the claims process.
Impressive Results and Additional Savings Opportunities
The final outcome exceeded expectations:
- Guaranteed Savings: The university achieved over $4 million in annual savings.
- Enhanced Benefits: Employees enjoyed a more comprehensive benefits package with reduced out-of-pocket costs.
- Budget Predictability: By utilizing The Difference Card’s Monthly Budget feature, the university capped its reimbursement expenses at a fixed monthly amount. Any surplus funds were returned, creating opportunities for further savings.
The Difference Card Impact
The Difference Card consistently delivers measurable results across industries, enabling organizations to save an average of 18% on health insurance costs. These solutions often improve employee satisfaction and retention by enhancing benefits.
Discover Your Savings Potential
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