February Case Study: The Difference Card Helps a California Printing Company Save $200,000 Off their Health Benefits Renewal
Challenge: A Costly Renewal Increase
A supply chain printing company in California faced a significant health benefits renewal increase for February 1, 2025, exceeding their budget. Their existing health insurance carrier, Aetna, proposed a steep 23% rate hike. Seeking a cost-effective solution, the company’s executive team turned to their trusted health benefits consultant at McGriff for guidance.
Solution: An Innovative Alternative Funding Approach
After evaluating carrier options in the health insurance market, McGriff collaborated with their Senior Consultant partner at The Difference Card, Adrien Darbouze, to explore alternative funding strategies. Adrien and the McGriff consulting team devised a plan that reduced the renewal increase from 23% to a guaranteed 7%, ultimately lowering the company’s net health insurance costs by $200,000 while enhancing employee benefits.
To achieve this outcome, Adrien recommended structuring a plan with higher copays and deductibles to decrease fixed premiums. Historically, this company had offered a generous triple-option health benefits plan with minimal out-of-pocket costs for employees. To optimize premium efficiency, Adrien proposed transitioning to a dual-option underlying plan while leveraging The Difference Card’s Medical Expense Reimbursement Plan (MERP) to maintain the existing triple-option structure. Employees retained access to their preferred provider network, with HMO and POS plan choices.
Results: Significant Savings with Enhanced Benefits
The alternative plan design successfully reduced Aetna’s fixed premiums by 28%, translating to over $300,000 in rate savings. Additionally, Adrien introduced The Difference Card’s Difference Guarantee Monthly Budget funding model, ensuring that the company achieved a net savings of $200,000. This approach provided a predictable monthly expense, eliminating cost fluctuations and offering surplus-sharing benefits. If employee claims were lower than the guaranteed amount, the company would receive 100% of the surplus savings.
The Difference Card Impact
The Difference Card consistently delivers measurable savings across industries, helping organizations reduce health insurance costs by an average of 18%. Beyond cost savings, these solutions improve employee satisfaction and retention by maintaining or enhancing benefit offerings.
Discover Your Savings Potential
Could your business benefit from similar savings? Connect with a Difference Card consultant today or request a customized proposal to explore your cost-saving opportunities.
