Case Study
How an environmental services provider escaped rollercoaster renewals
$110,000
in first-year savings
"The biggest change since switching to ParetoHealth is the control and transparency. We went from getting hit with crazy renewals to tracking trends and managing costs. We are finally in the driver’s seat."
Director of Human Resources, Lone Star Hazmat
Based inTyler, TX
SectorEnvironmental services
Number of employees150
Joined ParetoHealth2024
Plan typeFully insured
Savings engine partner solutionsCancer
Maternity
ParetoHealth Rx Consortium PBM
Surgery & imaging
Maternity
ParetoHealth Rx Consortium PBM
Surgery & imaging
Overview
Lone Star Hazmat, based in Tyler, Texas, is a regional environmental services provider focused on hazardous materials transportation, disposal, and emergency response. Like many midsize employers, healthcare had quietly climbed the ranks of their top three business expenses, but they had no insight into why.
Stuck in a traditional fully insured model, Lone Star Hazmat faced annual premium increases with no data, no explanation, and no ability to take action.
In 2024, Lone Star Hazmat joined ParetoHealth. They gained access to full claims transparency and finally saw what was driving their costs: unmanaged chronic conditions including high blood pressure and type 2 diabetes. Today, they’re using ParetoHealth Savings Engine solutions to lower healthcare spend and enhance employee benefits, while leveraging full claims transparency for strategic decision-making.
Challenge
Limited visibility and no leverage
As a hands-on, fast-moving environmental services company, Lone Star Hazmat is used to managing complex operations across multiple sites and high-risk situations. But when it came to healthcare, they needed help.
Their fully insured health plan delivered one thing consistently: rising renewals year after year. Without access to claims data, leadership had no way to understand what was driving costs, take proactive action, or support employees.
- Renewals increased unpredictably year after year.
- No claims visibility made it impossible to identify cost drivers.
- Employees lacked guidance, often defaulting to high-cost care without being aware of better options.
Solution
Real-time access to claims data with ParetoHealth
Lone Star Hazmat moved from a fully insured plan to self-funding with a captive, joining the ParetoHealth community in 2024.
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 midsize business
Lone Star Hazmat 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.
With real-time access to claims data, Lone Star Hazmat quickly identified unmanaged chronic conditions, including hypertension and type 2 diabetes, as key cost drivers.
Using ParetoHealth Savings Engine solutions, employees had access to high-quality, lower-cost care and medications. That shift delivered results almost immediately: a $20,000 outpatient surgery was reduced to just $10 out of pocket for one employee, thanks to ParetoHealth’s Savings Engine surgery and imaging solution. The midsize company also saved $16,000 by directing employees to lower-cost generic prescriptions and earned an additional $44,000 in pharmacy rebates through one of ParetoHealth Rx Consortium’s (PRxC) pharmacy benefit manager (PBM) partners.
- $55,000 first-year savings after switching to self-funding with ParetoHealth, compared to staying fully insured.
- $20,000 surgery reduced to just $10 out of pocket for an employee, thanks to the ParetoHealth Savings Engine solution that guides employees to high-quality, lower-cost providers.
- $44,000 in pharmacy rebates and $16,000 in prescription savings via lower-cost generic alternatives.
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Ready to join the right side of the fight? Let’s talk.