From $4,000 Deductibles to Zero Complaints:
Ridgeview’s GAP Plan Success
Ridgeview Industrial Solutions, a manufacturing company in the Southeast U.S. with 95 full-time employees, faced rising healthcare premiums that threatened employee satisfaction and retention. To mitigate costs, the company implemented a high-deductible health plan, but this change came at the expense of employee participation and morale. With the help of their HUB consultant, Ridgeview adopted Fox Everett’s Self-Funded GAP Plan, an innovative solution designed to reduce the out-of-pocket burden for employees. The result? Ridgeview built long-term financial reserves, maintained employee satisfaction, and turned a cost challenge into a strategic advantage.
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Introduction
Ridgeview Industrial Solutions has earned its reputation as a reliable player in the manufacturing industry. But even successful businesses face challenges, and in 2021, Ridgeview was grappling with increasing healthcare premiums. Like many mid-sized companies, they struggled to balance rising costs with the desire to provide competitive benefits for employees. Finding the right solution was critical—not just for employee retention and morale, but also for the company’s financial health.
Fox Everett, renowned for their custom solutions and boutique approach, partnered with Ridgeview to transform their health benefits strategy.
The Problem
Rising healthcare premiums had pushed Ridgeview to adopt a $4,000 deductible on their employee health plan, up from their previous $1,000 deductible. While this move helped control costs, it came with significant drawbacks:
Declining Employee Satisfaction
Employees became increasingly concerned about the higher out-of-pocket costs, leading to frustration and uncertainty.
Dropping Employee Participation Rates
Faced with the financial burden of the higher deductible, employees began opting out of the plan altogether.
Recruitment & Retention Challenges
The increased financial burden on employees made it harder for Ridgeview to attract and retain top talent, putting their competitive advantage at risk.
Ridgeview needed a solution that could address these challenges while allowing them to maintain fiscal responsibility.
The Solution
Ridgeview turned to Fox Everett’s Self-Funded GAP Plan, designed to bridge the gap between the $1,000 employees were accustomed to and the new $4,000 deductible. Here’s how the solution worked:
Coverage Gap Filled
Employees enrolled in the GAP Plan continued to pay no more than $1,000 out of pocket despite the higher deductible.
Mandatory Participation
All employees enrolled in the health plan were automatically covered under the GAP Plan, ensuring no one faced unexpected financial stress.
Claims Management by Fox Everett
Fox Everett efficiently administered claims for the GAP Plan, ensuring transparency and ease for Ridgeview and its employees.
Company-Funded Contributions
Ridgeview funded the plan with a fixed monthly contribution per employee, creating a sustainable financial model.
Through this innovative approach, Ridgeview achieved cost control without compromising employee satisfaction or participation.
The Results
The implementation of Fox Everett’s Self-Funded GAP Plan drove impressive outcomes for Ridgeview Industrial Solutions:
GAP Plan Reserve Creation
The company built over $200,000 in reserves within a few years, providing financial stability and flexibility.
Strategic Use of Reserves
In Year 4, Ridgeview used GAP reserves to fully fund the plan, easing cost increases without added pressure on employees.
No Disruption, No Surprises
Employees remained confident and satisfied with their healthcare coverage, resulting in continued participation and improved retention rates.
Measured Results. Meaningful Impact.
“I was very nervous when the higher deductible was rolled out, but we never even noticed the deductible change. I still paid my usual amount when I went in for care.”
Conclusion
Fox Everett empowered Ridgeview Industrial Solutions to turn a looming cost crisis into a strategic advantage. Faced with rising premiums and declining employee morale, Ridgeview needed a benefits solution that could protect their workforce without compromising their financial goals.
By implementing a Self-Funded GAP Plan, Ridgeview shielded employees from the financial burden of higher deductibles, achieved short-term savings, and built long-term reserves. The plan also helped the company maintain a competitive edge in both recruiting and retention by offering a more attractive and sustainable benefits package.
With a solid strategy now in place, Ridgeview plans to continue its partnership with Fox Everett—exploring additional cost-saving opportunities and tailoring future solutions to meet the evolving needs of their business and workforce.
Stop Overpaying. Start Optimizing.
If your organization is struggling to manage healthcare costs without compromising employee morale, take the first step toward a smarter strategy. For tailored support or to explore the right solution for your organization, contact Jay Butcher at Jay.Butcher@hubinternational.com.