CASE STUDY

The $1 Million Savings Milestone

How Cheverus High School incentivized “Consumerism” to achieve a $1M savings projection while keeping annual increases near the rate of inflation.

AT A GLANCE

Organization:

Cheverus High School (Jesuit Preparatory)

Location:

Portland, ME

Legacy Cost:

$500,000+ annually with rising volatility.

The Solution:

A “Consumerism-First” strategy fueled by the Captivated Health platform.

Total Savings:

$1 Million over the first five years.

Current Performance:

Average annual increases of only 3.5% (compared to the 8–10% industry trend).

Employer Funding:

Up to $1,875 in frontloaded deductible support for families.

THE CHALLENGE

Breaking the “Raise or Cut” Cycle

For 35 years, Michael Komich watched health insurance claim a larger and larger spot on the school’s budget. Under the old fully-insured structure, his only two “levers” to control costs were:

Raising per-paycheck premiums for staff.
Increasing deductibles to lower the plan price.

Neither option supported the school’s mission of caring for its faculty. They needed a financing model that rewarded health rather than just taxing illness.

THE SOLUTION

Incentivized Health & Direct Primary Care

Cheverus moved beyond basic insurance by offering employees a menu of “Health-Conscious Choices” that directly lowered their personal costs.

The 10% Premium Discount: Employees save 10% on their paycheck contributions by completing biometric screenings, health risk assessments, and micro-coaching sessions.
Direct Primary Care (DPC): The school funds patient relationships with a choice of two DPC physicians, providing employees with unlimited, high-quality primary care that prevents expensive ER visits.
Smart Consumerism Tools: Employees earn benefits by using “Health Guides” to source high-quality, low-cost care and by utilizing mail-order maintenance prescriptions.
Frontloaded Coverage: To ease the burden of high deductibles, the school uses its savings to fund the “first dollar” of coverage ($900 for individuals / $1,875 for families).

THE RESULTS

“We were told to expect about a million dollars of savings over five years… the projection landed true.”

1. A “Soft Landing” Every Year

While the market faces double-digit spikes, Cheverus has stabilized its total spend (claims, premiums, and fees) to a predictable $250,000 – $275,000 annually.

2. Blunting Catastrophic Claims

By being part of a 29-member “captive cell,” Cheverus shares risk with other schools. This community structure “blunts” the impact of high-cost claimants before they ever reach the stop-loss carrier, preventing the massive renewal hikes typical of the traditional market.

3. Costs Are Going Down (Again)

Even with high-cost claimants on the plan, Michael reports that health insurance costs have continued to trend downward. By empowering employees to be informed consumers, every smart decision they make positively affects the school’s bottom line.

THE TAKEAWAY

Cheverus High School proved that you don’t have to choose between “excellent insurance” and “cost outcomes.” By reinvesting savings into frontloaded deductible funding and Direct Primary Care, they created a culture of health that saved the school $1 million and counting.