Industry Spotlight – Manufacturing: Pennsylvania-Based Manufacturer Saves Over $250,000 on Health Insurance Costs
This month’s industry spotlight illustrates how the Difference Card’s Guarantee strategy within the Manufacturing space can save employers in this industry hundreds of thousands of dollars. The Difference Card helped a Sheet Metal Finisher with a nationwide presence create the most cost-effective healthcare plan for their January 1st renewal.
This manufacturing employer had been a Difference Card client in past years but decided to try a self-funded program in 2023. After the cost for that program rose significantly in 2024, the organization decided to return to the Difference Card strategy by pairing a fully insured high deductible plan with the MERP solution. The client and their health insurance consultant worked with United Healthcare to find the most cost-effective plan design, then engaged The Difference Card to help with a solution to control costs.
The Difference Card Pittsburgh Team was ultimately able to save this customer over $250,000 on their health insurance costs and reducing their spend by over 10%.
This employer had over 200 participants across multiple medical plans, which included a traditional copay option and an HSA-eligible plan design. The strategy was kept in place to not only provide a variety of options to their employees but also to keep as much continuity as possible through the transition.
By moving this group to a lower-cost copay and a higher deductible HSA plan and funding the difference, the Difference Card was able to reduce their fixed premium spend by over 25% compared to the conventional fully insured plan design with lower deductibles.
The Difference Card team of Data Analysts and Underwriters reviewed the employee information and projected a conservative forecast for the group’s annual claims in the upcoming plan year. After benefits were built back to the original design by using The Difference Card Strategy, the net renewal was over -11% less than their previous costs.
Many Difference Card customers look for financial protection when taking on the risk of paying claims for their employees. This manufacturing-specific employer decided to purchase The Difference Guarantee insurance policy, which capped the client’s utilization liability and guaranteed savings by moving forward with The Difference Card strategy. This strategy helped to guarantee savings and provide budget protection to this employer.
This Manufacturer was facing a tough renewal on their self-funded program due to some higher cost claims. Bringing them back to the Difference Card was an easy transition for the employer and employees. Employees were happy to learn there were no changes in the benefit plan designs and even an improvement on the PPO plan with a $0 Primary Care copay! The Difference Card is also administering their HSA for convenience of a “one card” solution. Our broker partner was able to use the Difference Card to accomplish the goal of low cost benefits while meeting the needs of this valuable client.
The Difference Card helps employers in all industries, not just manufacturing, to save an average of over 18% off their health insurance costs, while often improving benefits and experience for employees.
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