21% lower cost per enrolled employee, down from $7,507 to $5,917
Background
Crossroads had been on a fully insured group health plan for years. Renewal increases kept climbing every cycle. Heading into 2025, the projected increase reached 25%. Much of that came from claims volatility. Under the old plan, Crossroads had no real way to control the cost beyond absorbing it. The HR team, working with their broker at Alera Group, started looking for a different approach.
Approach
Crossroads looked at self-funding and captives before deciding on an employee health budget model. That model appealed because it took renewal pricing out of Crossroads' own claims history. Together with Thatch, they set contribution levels using a Silver benchmark plan with 75% employer cost-sharing. Heading into their first renewal, the team used a multi-tier allowance strategy instead of one blended number. Budgets flexed by geography, household size, and need.
Outcome
The move avoided nearly $943,000 in renewal impact, the cost Crossroads would have absorbed had they stayed on the old plan. On top of that, they saved about $28,000 compared to the prior year, even after Thatch's fees. Participation grew from 51% to 59% in year one, and kept climbing to 457 employees by the 2026 renewal planning cycle. Employees got lower premiums and more plan choice. Most now go straight to Thatch's support team instead of needing help from HR. Heading into a volatile 2026 renewal, Crossroads used its contribution strategy as a lever, adjusting budgets by geography and household size instead of facing one unpredictable number.
💬 “People like picking the plan that meets their needs instead of choosing from just one of three. It's very nice to confidently point employees to Thatch's support team and know they'll be helped.” — Maggie Chapman, Director of People Operations, Crossroads
Disclosure: Alera Group is the employee benefits broker of record for Crossroads. Alera Group has a referral relationship with Thatch and/or its affiliates and receives compensation in connection with employer engagements that result in ICHRA enrollments through Thatch. Ms. Chapman's statements reflect her professional opinion and do not constitute investment, legal, or tax advice.
