Case Study: How a 40-Employee Company Reduced Healthcare Costs by $60,000 While Improving Benefits

The Challenge: Another Large Renewal Increase from Blue Cross

A Pennsylvania-based employer with approximately 40 covered employees had been insured through Blue Cross for more than 10 years. While they valued the network and stability of their coverage, annual premium increases had become a growing concern.

As their renewal approached, the company was facing a significant increase in healthcare costs and believed their only options were to either:

• Accept the renewal increase
• Shift more costs to employees
• Reduce benefits to offset expenses

Like many employers, they assumed maintaining quality coverage would require higher employee deductibles and increased out-of-pocket costs.

They contacted The BRIC Agency for a second opinion.

Our Approach: Evaluating Alternative Funding Optiaons

The BRIC Agency conducted a comprehensive review of the company’s current benefits program, claims experience, and renewal projections.

Rather than focusing solely on traditional fully insured plans, we evaluated whether the company was a good candidate for a level-funded health plan.

Level-funded plans have become an increasingly attractive option for employers with 20 to 500 employees because they offer:

• Predictable monthly costs
• Potential savings compared to fully insured plans
• Greater transparency
• Access to quality provider networks
• More flexibility in plan design

After analyzing the group’s data, it became clear that a level-funded arrangement could provide both cost savings and enhanced employee benefits.

The Results

Annual Savings of $60,000

By moving from their Blue Cross fully insured renewal to a level-funded health plan, the company reduced its annual healthcare spending by approximately $60,000.

Deductible Reduced by Two-Thirds

Perhaps even more impressive, the company was able to significantly improve employee benefits.

The new plan reduced the employee deductible by approximately 67%, lowering it to roughly one-third of the previous deductible amount.

This created immediate value for employees by reducing out-of-pocket exposure while maintaining strong healthcare coverage.

Improved Employee Satisfaction

Rather than announcing higher costs and reduced benefits at open enrollment, leadership was able to present a solution that improved affordability for both the company and its employees.

Long-Term Cost Control

The level-funded structure also provided greater visibility into healthcare spending and positioned the employer for more strategic benefits planning in future years.

Why More Employers Are Exploring Level-Funded Health Plans

Many employers remain in fully insured health plans because they are unaware of alternative funding arrangements available today.

For businesses with 20 to 500 employees, level-funded plans can often provide:

• Lower premiums
• Better plan designs
• Reduced employee deductibles
• Enhanced reporting
• Greater transparency
• Potential future savings opportunities

While not every employer is a fit, companies with stable employee populations and favorable claims experience are often surprised by the opportunities available.

Key Takeaways

This case demonstrates an important reality in today’s healthcare market:

Employers do not always have to choose between lower costs and better benefits.

By carefully evaluating alternative funding options, this 40-life group was able to:

• Save $60,000 annually
• Reduce employee deductibles by approximately 67%
• Maintain strong healthcare coverage
• Gain greater visibility into healthcare spending

How The BRIC Agency Helps Employers Lower Healthcare Costs

At The BRIC Agency, we specialize in helping employers identify cost-saving opportunities through:

• Level-funded health plans
• Self-funded health plans
• Fully insured plan reviews
• Alternative funding strategies
• Prescription drug optimization
• Compliance and HR consulting

Our independent approach allows us to evaluate multiple carriers and funding arrangements to find the best solution for each employer.

Request a Complimentary Benefits Review

If your company has 20 to 500 employees and you’re facing another significant health insurance renewal increase, a second opinion could uncover substantial savings opportunities.

The BRIC Agency provides no-cost benefits reviews designed to help employers improve benefits, reduce costs, and build a more sustainable healthcare strategy.