Case Study for Portland Air Conditioning using a Choice Care Card based HRA
Portland Air Conditioning, a 15 employee HVAC contractor, had been insured with a first dollar HMO plan design for many years. Like most other employers, they had been suffering double digit rate increases year after year.
In 2002 Portland Air took control of their health insurance program by implementing a higher deductible health plan along with a Choice Care Card based HRA.
The plan design implemented in 2002 is as follows:
$2,500 deductible
90/70% co-insurance
$3,500 out of pocket maximum
$20 office visit co-pay with preventive care
10/25/40 Rx co-pay
The company funds an HRA with $1,000 annually for each employee.
The results for the years 2002 through 2008 are as follows.
| HMO premiums that would have been paid |
$417,253 |
| Premiums paid for the high deductible health plan |
$272,743 |
| Actual HRA funds spent |
38,454 |
| Choice Care Card admin fee |
13,095 |
| Total spent with HDHP and Choice Care Card |
$324,292 |
| Total Savings over the six year period |
$ 92,961 |
| Annual Savings per employee: |
$ 1,191 |
*The savings totals are approximate due to monthly variations in enrollment and the assumption that the previous plan would have been continued with no changes to benefits.
Click here for a printable version
Case Study for Pouliot & Corriveau using a Choice Care Card based HRA
Pouliot & Corriveau, a 24 employee trucking company, had been insured with a $500 80/20 PPO plan for many years. Like most other employers, they had been suffering double digit rate increases year after year.
In 2004, Pouliot & Corriveau took control of their health insurance program by implementing a higher deductible health plan along with a Choice Care Card based HRA.
The plan design implemented in 2004 is as follows:
$3,000/6000 deductible
100% co-insurance
$3,000 out of pocket maximum
$30 office visit co-pay with preventive care
The company funds an HRA with $1,500/3000 annually for singles and families.
The results for the years 2004 through 2008 are as follows
| Previous health plan premiums that would have been paid |
$965,495 |
| Premiums paid for the high deductible health plan |
$626,316 |
| Actual HRA funds spent |
100,364 |
| Choice Care Card admin fee |
13,941 |
| Total spent with HDHP and Choice Care Card |
$740,621 |
| Total Savings over the five year period |
$224,874 |
| Annual Savings per employee: |
$ 1,874 |
*The savings totals are approximate due to monthly variations in enrollment and the assumption that the previous plan would have been continued with no changes to benefits.
Click here for a printable version
Case Study for The Institute for Sustainable Communities using a Choice Care Card based HRA
The Institute for Sustainable Communities, a 20 employee social service agency, had been insured with a $500 deductible 80/20 PPO plan for many years. Like most other employers, they had been suffering double digit rate increases year after year.
In 2004, The Institute for Sustainable Communities took control of their health insurance program by implementing a higher deductible health plan along with a Choice Care Card based HRA.
The plan design implemented in 2004 is as follows:
$3,000/6000 deductible
100% co-insurance
$3,000 out of pocket maximum
$30 office visit co-pay with preventive care
The company funds an HRA with $1,500/3000 annually for singles and families.
The results for the years 2004 through 2008 are as follows
| Previous health plan premiums that would have been paid |
$979,120 |
| Premiums paid for the high deductible health plan |
$611,754 |
| Actual HRA funds spent |
160,548 |
| Choice Care Card admin fee |
11,422 |
| Total spent with HDHP and Choice Care Card |
$783,724 |
| Total Savings over the five year period |
$195,396 |
| Annual Savings per employee: |
$ 1,776 |
*The savings totals are approximate due to monthly variations in enrollment and the assumption that the previous plan would have been continued with no changes to benefits.
Click here for a printable version
Case Study for The World Newspaper using a Choice Care Card based HRA
The World Newspaper, a 13 employee newspaper company, had been insured with a $20/30 Office Visit, $500 Hospital Inpatient Co-pay HMO plan for many years. Like most other employers, they had been suffering double digit rate increases year after year.
In 2004, The World Newspaper took control of their health insurance program by implementing a higher deductible health plan along with a Choice Care Card based HRA.
The plan design implemented in 2004 is as follows:
$3,000/6000 deductible
100% co-insurance
$3,000 out of pocket maximum
$30 office visit co-pay with preventive care
The company funds an HRA with $1,000/2000 annually for singles and families.
The results for the years 2004 through 2008 are as follows
| Previous health plan premiums that would have been paid |
$417,965 |
| Premiums paid for the high deductible health plan |
$224,608 |
| Actual HRA funds spent |
50,225 |
| Choice Care Card admin fee |
7,911 |
| Total spent with HDHP and Choice Care Card |
$332,744 |
| Total Savings over the five year period |
$85,221 |
| Annual Savings per employee: |
$ 1,311 |
*The savings totals are approximate due to monthly variations in enrollment and the assumption that the previous plan would have been continued with no changes to benefits.
Click here for a printable version
