December Case Study: The Difference Card Replaces Gap Plan to Save Software Firm Over $440,000 and Improve Health Benefits!
A Pennsylvania software company faced a significant health insurance renewal increase from Highmark Blue Cross Blue Shield (BCBS) of Pennsylvania, which threatened to raise their premiums by 30%. With over 300 employees enrolled in the health insurance plan, their healthcare spend was poised to increase from $2.8 Million to over $3.7 Million. In addition to the health insurance renewal issue, the company faced many administrative problems caused by their current gap insurance provider. This technology company asked their insurance consultant to come up with a solution to both their pricing and administrative issues.
The team at Liberty Insurance Agency turned to their Senior Consultant partner, Rachel Wilburn, at the Difference Card, for assistance. Rachel worked with the Liberty team and their carrier partners at Highmark to craft a solution for this customer. Removing the gap plan premium reduced the fixed costs for this employer by -23%, worth over $900,000 annually. The company then reinvested a portion of these savings into The Difference Card’s Medical Expense Reimbursement Plan (MERP). The Difference Card team customized the funding structure to provide enhanced benefits. This customized MERP included a mix of medical copay, and deductible reimbursements, creating a plan that reduced employees’ out-of-pocket costs while expanding their benefits.
The Difference Card’s unique debit card technology solution, integrated with Highmark BCBS would a claims file feed provided the strategy that solved this client’s administrative issue. The MasterCard provides employees of this organization with point-of-sale access to the funds, so they do not have to come out of pocket with for any additional copay amounts. For more complex transactions, such as hospitalization, the Difference Card file feed connection with Highmark provides the data needed to process reimbursements without any member friction. The Difference Card can also automatically substantiate transactions, which avoids the employee’s having to deal with the paperwork involved in filing claims.
The end result was impressive: the software firm realized over $440,000 in guaranteed annual savings while providing a more attractive benefits package for employees. Additionally, the company chose The Difference Card’s Monthly Budget feature within the Difference Guarantee program, which capped their reimbursement expenses at a fixed monthly amount and offered a 100% return on any surplus funds. With this feature, the firm anticipates saving additional money if their health plan achieves targeted outcomes.
The Difference Card Impact
Through similar solutions, The Difference Card enables companies across various industries to save an average of 18% on health insurance costs, often with enhanced benefits that improve employee satisfaction and retention.
Explore Your Savings Potential
To find out how much your business can save with The Difference Card, connect with a consultant in your region or request a proposal today.
