Case Study

From a 20% Fully Insured Renewal to $320K Savings with Pareto

$320K

in first-year savings vs. fully insured renewal

For years, we talked about self-funding, but we weren't ready to take the leap. Pareto's No New Laser policy and rate cap were the safeguards that finally gave us the confidence to move forward.

Autumn Peterson

Senior Benefits Specialist

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Based inFuquy-Varina, NC

SectorManufacturing and wholesale

Number of employees200

Joined ParetoHealth2022

Plan typeFully Insured

Bob Barker Company, a family-owned manufacturer and distributor in North Carolina with approximately 200 employees, had spent years searching for a sustainable way to manage rising healthcare costs.

The company redesigned its benefits plan with a high-deductible health plan and HRA to keep coverage affordable, but the approach created added complexity for employees.

Leadership believed self-funding could offer a better path forward, but concerns about catastrophic claims made the decision difficult. One company executive had previously witnessed a small business fail after being hit with a high-cost claimant, making risk protection a critical consideration.

After evaluating self-funding for several years, their consultant introduced Bob Barker Company to the ParetoHealth community.

The protections built into the captive gave leadership the confidence to make the move. Bob Barker Company joined Pareto in 2022 and saved $320,000 in its first year while simplifying benefits and expanding resources for employees.

CHALLENGE

Rising healthcare costs were creating pressure across the business

Like many small and midsize employers, Bob Barker Company found itself trapped in the fully insured cycle of double-digit renewals.

Healthcare costs continued to rise, with annual increases starting at 20% year after year.

A high-deductible health plan and HRA created a complicated benefits experience for employees.

Leadership wanted to self-fund but needed protection from catastrophic claims.

SOLUTION

A protected path to self-funding

After evaluating self-funding for several years, Bob Barker Company joined the Pareto captive in 2022. Pareto’s Risk Shield protections including the 30% rate cap and No New Laser policy gave leadership the confidence to move away from fully insured coverage.

The company also implemented solutions including SmartConnect, Valenz Health, eHealth, and CancerCare, creating a simpler benefits experience while helping employees access the right care at the right cost.

OUTCOMES