Case Study
How a public library ditched the status quo and saved $1M with ParetoHealth
$1M
in overall savings
"We’ve achieved nearly $1 million in savings, kept premiums flat, and have given our employees medical and pharmacy benefits they actually use and love. With ParetoHealth and the guidance of our consultant, we finally have stability and control for the long-term future."
Director of Human Resources, Evansville Vanderburgh Public Library
Based inEvansville, IN
SectorNonprofit
Number of employees122
Joined ParetoHealth2015
Plan typeFully insured
Savings engine partner solutionsCancer
Care navigation
Care navigation
Overview
The Evansville Vanderburgh Public Library (EVPL) has been a cornerstone of the Evansville, Indiana, community for over a century. With a mission to serve and support people through access to information, technology, and education, EVPL also strives to take care of the team that makes it all happen. But rising healthcare costs were starting to limit how far that commitment could go.
On a fully insured health plan, EVPL was covering 75% of employee premiums, a generous contribution that was becoming increasingly difficult to sustain. They were hit with a significant renewal increase, and when they pushed back, the insurer came back with a flat renewal, a short-term fix with no long-term solution.
EVPL and their benefits consultant saw through the short-term concession, and knew they needed a more proactive strategy. EVPL joined ParetoHealth in 2015. Since then, they’ve saved nearly $1 million, increased premium coverage to 90%, and engaged their employees in smarter care choices using ParetoHealth’s Savings Engine.
Challenge
Blindsided by a big renewal increase
Before joining Pareto, EVPL was on a fully insured health plan and covering on average 75% of premiums, but had no visibility or control over rising medical and pharmacy costs.
- Premiums on the rise: EVPL was hit with a significant renewal hike, and after signaling they might explore other options, they were offered a 0% increase.
- No visibility: Without access to claims data, EVPL couldn’t prepare for or manage emerging risks, especially as pharmacy costs were doubling year over year.
- Financial vulnerability: EVPL had to absorb every dollar of volatility handed down by their insurer.
Solution
A proven strategy with ParetoHealth
EVPL moved from a fully insured plan to self-funding with a captive, joining the ParetoHealth community in 2015.
What is an employee benefits captive?
An employee benefits captive is an employer-owned insurance company formed by multiple employers to collectively self-fund their employee health benefits. By pooling their risk, members reduce cost volatility and lower fixed costs.
What makes ParetoHealth different?
ParetoHealth consistently outperforms traditional insurance, empowering small and midsize employers with a long-term solution to eliminate volatility and lower overall healthcare spend.
With more than 3,500 employers and 1.2 million covered lives, ParetoHealth is the largest and fastest-growing community of its kind and three times larger than any competitor. The scale of ParetoHealth’s community gives small and midsize employers access to protections, pricing, and programs they can’t access on their own.
ParetoHealth’s Risk Shield offers the strongest stop-loss protections in the market, including guaranteed no new lasers and caps stop-loss increases, making costs predictable year over year and protecting employers from large-claim volatility.
The ParetoHealth Savings Engine addresses the root causes of high-cost claims. Backed by data, analytics, and in-house clinical experts, it delivers curated programs and multi-year strategies that lower costs over time.
Thousands of midsize employers have already left traditional insurance behind to join the ParetoHealth community and the movement is only growing.
How ParetoHealth helped this nonprofit
EVPL left behind the reactive cycle of fully insured renewals and moved to self-funding with ParetoHealth, gaining access to the risk protections, cost-containment tools, and claims transparency they had been missing.
With full visibility into claims data, they began proactively tackling top cost drivers. They implemented multiple ParetoHealth Savings Engine solutions, including care navigation and cancer support, to redirect care and improve outcomes. The result: more engaged employees and $1 million in healthcare cost savings.
- $1 million saved: EVPL took action to implement numerous ParetoHealth Savings Engine solutions to address top cost drivers such as cancer.
- Very manageable renewals over the past decade: With ParetoHealth’s industry-leading renewal rate cap and no new lasers guarantee, EVPL avoided the renewal volatility they used to brace for every year.
- 80% of employees engaged with care navigation: Employees embraced new value-added tools like care navigation to save money and access high-quality, affordable care.
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Ready to join the right side of the fight? Let’s talk.