North Carolina Manufacturer Cuts Health Insurance Costs by 15% with the Difference Card
Key Takeaways A Quick Summary
Key Takeaways
- The organization avoided a 10% Anthem renewal increase and achieved a -8% decrease to current costs, delivering more than $500,000 in guaranteed annual savings through The Difference Card MERP.
- The existing medical plan structure (two Anthem HMO plans and one PPO) and copay-based benefits were preserved, minimizing disruption for employees during open enrollment.
- The MERP reimbursement strategy lowered employees' overall out-of-pocket healthcare expenses, enhancing member value without reducing benefit quality.
- The Difference Guarantee capped the employer's annual reimbursement liability for predictable budgeting; the Monthly Budget feature smoothed monthly funding; and 100% of any unused reimbursement surplus is returned to the employer.
- The partnership between Higginbotham and The Difference Card demonstrated a replicable, innovative funding approach that reduced employer healthcare spend while preserving employee choice and benefit value.
North Carolina Manufacturer Turns a 6% Increase into a 9% Decrease
For employers facing rising healthcare costs, finding meaningful savings without sacrificing employee benefits can be a difficult balancing act. One North Carolina manufacturing company recently accomplished both with the help of Steve Marquis from the Difference Card sales team and AMWINS.
The employer initially faced a 6% health insurance renewal increase. By implementing a Difference Card Medical Expense Reimbursement Plan (MERP) strategy, the team transformed that increase into a 9% reduction below current costs.
The result was a 15-percentage-point improvement worth $37,776 in annual savings, while allowing the employer to maintain a competitive triple-option benefit strategy for its employees.
The Challenge: Control Costs Without Disrupting Benefits
Manufacturing employers compete for skilled workers in a challenging labor market, making health benefits an important part of employee recruitment and retention. Simply shifting additional costs to employees through higher deductibles and out-of-pocket expenses was not the solution this employer was looking for.
Working together, AMWINS and Steve Marquis of the Difference Card identified an opportunity to restructure the employer's health plan using a MERP while preserving the flexibility and choice employees valued.
Rather than accepting a 6% increase, the employer was able to move its total health insurance costs to 9% below its current level.
The Results
- Original renewal: +6%
- Final cost: -9% below current
- Overall improvement: 15 percentage points
- Annual savings: $37,776
- Solution: Difference Card MERP
- Added protection: Difference Guarantee
- Plan structure: Three medical plan options
Maintaining a Triple-Option Plan Strategy
One of the most important aspects of the solution was the employer's ability to continue offering three distinct medical plan options.
Instead of sacrificing employee choice to achieve savings, the Difference Card MERP strategy allowed the company to preserve its triple-option structure while enhancing the way employees accessed their benefits.
Two of the three plans provided first-dollar coverage through the Difference Card, helping protect employees from higher upfront out-of-pocket expenses that can accompany higher-deductible medical plans.
The third option incorporated a Health Savings Account (HSA) through the Difference Card, giving eligible employees access to the HSA's valuable triple tax advantage: tax-deductible or pre-tax contributions, tax-free growth, and tax-free withdrawals when funds are used for qualified medical expenses.
Together, the three options provided employees with meaningful choice while enabling the employer to capture significant healthcare savings.
Adding Financial Protection with the Difference Guarantee
While MERP strategies can generate substantial savings, employers may be concerned about the potential variability associated with reimbursement claims.
This North Carolina manufacturer addressed that concern by purchasing the Difference Guarantee, which placed a cap on the employer's reimbursement liability.
The Difference Guarantee provided the employer with greater budget certainty while allowing it to benefit from the savings created by the MERP strategy. This combination helped deliver a compelling outcome: a 15% improvement in the renewal with defined protection against reimbursement risk.
A Growing Partnership Between AMWINS and the Difference Card
This success story also represents an important milestone in the growing relationship between AMWINS and the Difference Card.
What began as a partnership in the Carolinas has quickly expanded into a national general agency relationship, creating new opportunities to bring the Difference Card's cost-containment strategies to brokers and employers across the country.
As a leading specialty insurance provider, AMWINS brings extensive market expertise and distribution capabilities to the partnership. Combined with the Difference Card's MERP solutions, the relationship provides brokers with another strategy for helping employers address one of their most persistent challenges: controlling healthcare costs while continuing to offer competitive employee benefits.
The North Carolina manufacturing case demonstrates the potential of that partnership in action.
Better Benefits. Lower Costs. Greater Certainty.
Through the combined efforts of Steve Marquis, AMWINS, and the Difference Card, this manufacturing employer avoided a 6% health insurance increase and instead achieved costs 9% below current levels.
The 15-percentage-point swing generated $37,776 in savings, while employees retained access to three medical plan choices, including two options with first-dollar coverage and an HSA-compatible option offering valuable tax advantages.
With the Difference Guarantee providing additional protection against reimbursement liability, the employer was able to balance savings, employee benefits, and financial predictability.
It is a strong example of what the growing national partnership between AMWINS and the Difference Card can deliver for brokers and their clients: a smarter approach to managing healthcare costs without simply shifting those costs to employees.
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