“If we went back to our old plan, we’d easily spend $750,000 more per year. Our employees benefit from the lower payroll deductions and lower deductibles.”

–Fernando Rios, CAPE Environmental Management Inc.

Client Overview

CAPE Environmental Management is based in Norcross, Georgia, and offers construction remediation services nationwide.  CAPE has 167 employees located in 37 different states, with approximately 90 enrolled in its health plan.

Challenges

In 2019, CAPE became frustrated with the year-after-year double-digit increases in health insurance premiums. The increases over the years had forced them to increase their deductibles to $4,000 for individuals and $12,000 for families. Additionally, they were increasing employee costs year after year to stay within budget. They felt like they had no control over their health insurance costs, and the surge in costs and deductibles made it a challenge to hire and retain top talent in their industry, which had management very concerned. 

The Solution

In November 2019, CAPE decided to implement a philosophical change with Health Rosetta Advisor Michael Lank of The Lank Group and made the following changes:

• Move away from Cigna to an independent Third Party Administrator (TPA) so they could unbundle services

• Select an independent Pharmacy Benefit Manager (PBM) that provides lower prescription costs and gives CAPE back 100 percent of rebates

• Carve out pharmacy specialty drugs which alone saved CAPE over $190,000 the first year

• Get rid of the Cigna network and lower facility costs by 40-50 percent

The Results

• First-year savings of 30 percent, which was over $700,000 vs the previous year’s Cigna renewal rates

• Second-year savings of an additional 22 percent for a two-year reduction in cost of 52 percent!

• Six years later, CAPE has saved over $4.71 million

• CAPE reinvested part of its savings back into its employees by:

  • Reducing employee deductibles from $4,000 to $500 for individual coverage, and from $12,000 to $1,000 for family coverage

  • For 2026, they have further reduced employee deductibles to $0

  • Lowering employee payroll deductions for health insurance coverage. Employee costs today are lower than in 2018

• 2024 , 2025, and 2026 Rosie Award Winner at RosettaFest for offering a high quality health insurance plan and reinvesting dividends back to their employees

  
  

Don’t let another year of the status-quo go by. If you do, nothing will change!‍ ‍
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