CASE STUDY
When group health stopped working, Rydell found a new path forward with ICHRA.
Rydell Auto Group is a family-owned, multi-location auto dealership serving customers across the Upper Midwest region. With roughly 300 employees in sales, service, and support roles, Rydell combines the feel of a local dealership with the operational complexity of a mid-sized regional employer.
Industry:
Automotive
Location:
Grand Forks, ND
Employees:
~300
Previous Model:
Group Health Plan
Premiums kept climbing as a few high-cost claims pushed Rydell’s group rates out of reach. The renewal environment deteriorated so much that carriers stopped even quoting the case. Leadership still wanted to offer meaningful benefits, but needed a model that was sustainable and predictable over time. Traditional group health had shifted from a manageable benefits expense to a real business risk.
Rydell partnered with their benefits broker and Benafica to explore an ICHRA model as an alternative. Instead of chasing unsustainable renewals, they shifted to a defined contribution approach that let them keep offering competitive, ACA-compliant coverage. Many employees were able to choose plans that better fit their needs and, in some cases, even lowered their premiums—while the company gained predictability and reduced risk on its benefits budget.
Annual Company Savings:
~$500,000
Employees Enrolled:
211
Carrier Choices:
XX Different Carriers
Talk to Benafica about setting up an ICHRA or QSEHRA for your business.
We’ll help you choose the right HRA type, design employee classes, and handle all the administration.
Call us at 651-287-3253 or fill out the form below.
