Case Study

How One Employer Saved $400K and Doubled Benefits Satisfaction

$400K

in first-year savings vs. fully insured renewal

ParetoHealth’s Savings Engine has been a game changer for us. It’s not just about reducing costs. It’s also about improving the lives of the people we cover every day.

Valley Elliehausen, MBA, SHRM-SCP

Chief People Officer

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Based inMilwaukee, WI

SectorProfessional services

Number of employees200

Joined ParetoHealth2024

Plan typeFully insured

On her first day as Chief People Officer at A.B. Data, Valley Elliehausen signed off on a 29% increase to the company’s health plan.

It was a difficult way to start.

Employees were already expressing frustration with their benefits, turnover remained a concern, and leadership was looking for ways to strengthen the employee experience. One year later, A.B. Data was facing another 30% increase.

Rather than continue reacting to rising healthcare costs year after year, Valley partnered with USI to evaluate alternatives to traditional insurance. After exploring several captive options, A.B. Data joined the ParetoHealth captive in 2024.

In its first year, the company saved more than $400,000 compared to its fully insured renewal, increased employee benefits satisfaction from less than 30% to more than 70%, and created a more sustainable strategy for managing healthcare costs.

CHALLENGE

Rising healthcare costs were creating pressure across the business

Like many midsize employers, A.B. Data found itself caught in a cycle of rising healthcare costs with limited visibility into what was driving them.

The company absorbed a 29% renewal increase and then faced another 30% increase the following year. At the same time, employee feedback pointed to growing dissatisfaction with the benefits experience.

Leadership wanted a way to better understand healthcare spending, make more informed decisions, and create a benefits program employees valued.

SOLUTION

A better experience for employees

Working with their consultant at USI, A.B. Data evaluated several options before choosing ParetoHealth.

ParetoHealth’s Risk Shield protections, including the 30% stop-loss rate cap and No New Laser policy, helped A.B. Data manage large claims and reduce uncertainty while transitioning from fully insured coverage.

A.B. Data also implemented solutions available through the ParetoHealth Savings Engine, including programs designed to improve access to care. The result was a benefits strategy built around visibility, stability, and continuous improvement rather than annual renewal negotiations.

OUTCOMES