How a tourism company defied healthcare inflation with ParetoHealth

Overview

American Heritage Railways is a heritage tourism company, welcoming over 2 million guests annually through its directly owned railroads and other historic attractions. Based in Durango, Colorado, the company operates iconic experiential attractions like the Durango & Silverton Narrow Gauge Railroad and employs more than 200 people across multiple locations.

After years of navigating the rising costs of a fully insured health plan and the unpredictability of traditional self funded insurance, American Heritage sought a better solution. In 2017, they joined ParetoHealth, unlocking a smarter, community-driven approach to self-insurance with a captive. The result: over $400,000 in pharmacy savings, a 10% decrease in stop-loss premiums (SLP), and flat total health plan spend since joining Pareto.

Challenge

Unstable costs, limited control

American Heritage’s self funded health plan had put strain on the business, forcing them to revert to a fully insured model for three years just to regain financial footing. Even then, escalating and unpredictable costs made long-term planning impossible:

• A high-cost cancer laser had put the company’s finances at risk.
• Volatile healthcare expenses put a vision of cost savings and high-quality benefits
  beyond reach.
• The focus was on year-to-year renewals instead of a long-term strategy.