Southern California Religious Non-Profit Achieves More Than $500,000 in Guaranteed Annual Savings While Enhancing Employee Benefits
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As healthcare costs continue to challenge employers across the country, organizations are searching for innovative ways to protect their budgets without asking employees to sacrifice the quality of their healthcare benefits. Through a collaborative partnership between Chris Frascarelli, Senior Sales Consultant for The Difference Card's Southern California market, and the employee benefits team at Higginbotham, one large California-based religious non-profit organization found exactly that solution.
The Challenge
This faith-based non-profit organization, employing more than 200 employees, was facing a 10% health insurance renewal increase from Anthem Blue Cross of California. The organization had long offered employees a comprehensive benefits package featuring three medical plan options, two HMO plans and one PPO plan, and leadership was committed to preserving the quality of coverage that had become an important part of its employee value proposition.
Rather than shifting more costs onto employees through higher deductibles or increased copays, the organization sought an alternative funding arrangement that would control expenses while continuing to support its workforce.
The Solution
Working closely together, Chris Frascarelli and Higginbotham introduced The Difference Card's Medical Expense Reimbursement Plan (MERP) solution, allowing the organization to redesign its funding strategy instead of reducing benefits.
The Difference Card successfully:
- Reduced the employer's renewal from a 10% increase to a solution delivering a -8% decrease to current costs with more than $500,000 in guaranteed annual savings.
- Preserved the organization's existing medical plan structure, including two Anthem HMO plans and one Anthem PPO plan.
- Maintained familiar copay-based benefits, minimizing disruption for employees during open enrollment.
- Enhanced member value by lowering employees' overall out-of-pocket healthcare expenses through the MERP reimbursement strategy.
Instead of asking employees to absorb rising healthcare costs, the organization was able to offer richer financial protection while significantly reducing its overall healthcare spend.
Budget Certainty Through the Difference Guarantee
A key component of the solution was The Difference Card's Difference Guarantee, which provided the organization with a predictable financial model by placing a cap on the employer's annual reimbursement liability.
This guaranteed maximum exposure eliminated uncertainty surrounding reimbursement costs and allowed organizational leadership to confidently budget for healthcare expenses throughout the plan year.
Additionally, the Difference Card's Monthly Budget feature simplified the accounting process by providing consistent monthly funding while eliminating the volatility often associated with self-funded reimbursement programs.
At the conclusion of the plan year, the client also benefits from one of the program's most valuable features:
100% of any unused reimbursement surplus is returned directly to the employer.
This combination of guaranteed savings, predictable monthly budgeting, and full surplus return delivered both financial transparency and long-term confidence.
Stronger Benefits Without Higher Employee Costs
One of the most meaningful outcomes of the project was that employees experienced improved financial protection without losing access to the health plans they knew and trusted.
By maintaining the existing copay plan designs and reducing members' out-of-pocket responsibility, the organization reinforced its commitment to employee wellbeing while simultaneously achieving significant cost savings.
This balanced approach demonstrated that employers do not have to choose between controlling healthcare costs and providing competitive benefits.
Building a Successful Partnership
This engagement also marked an exciting milestone in the growing partnership between Higginbotham and The Difference Card.
By delivering a customized strategy that generated more than $500,000 in guaranteed annual savings, preserved employee choice, and enhanced benefit value, Chris Frascarelli and the Higginbotham consulting team demonstrated how innovative healthcare funding strategies can produce meaningful results for employers facing rising healthcare costs.
As this relationship continues to grow, both organizations remain focused on helping employers across the country to identify sustainable solutions that reduce healthcare spending while improving the employee experience.
Results at a Glance
- Industry: Religious Non-Profit Organization
- Employees: 200+
- Insurance Carrier: Anthem Blue Cross of California
- Medical Plans: Two HMO options and one PPO option
- Renewal Impact: +10% increased turned into a -8% decrease to current
- Annual Guaranteed Savings: Over $500,000
- Solution: Difference Card Medical Expense Reimbursement Plan (MERP)
Key Advantages:
- Maintained existing copay plan designs
- Lowered employee out-of-pocket costs
- Difference Guarantee capped reimbursement liability
- Monthly Budget simplified accounting and cash flow
- 100% return of unused reimbursement surplus
- Strengthened the strategic partnership between Higginbotham and The Difference Card
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