Benafica is a health benefits and insurance company that helps employers offer flexible, tax-free health reimbursement plans instead of traditional group health insurance.
Rydell Auto Center’s Approach to Employee Health Benefits
See how Rydell Auto Center partnered with Benafica to bring a new approach to health benefits to its team.
~$500K
Annual company savings
200+
Employees enrolled
Location
Grand Forks, ND
Previous model
Group Health Plan
A Local Dealership with a Regional Employer’s Complexity
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.
Watch the 2-minute story
We sit down with Rydell’s HR leader, Laura, and their broker partner, Dominic, to unpack why traditional group health had become a real business risk, and how they used an ICHRA strategy with Benafica to regain control.
From a renewal nobody would quote to a benefit they control
The breaking point
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. Leadership still wanted to offer meaningful benefits, but needed a model that was sustainable and predictable.
- Unpredictable renewal risk
- Few or no carrier options
- Pressure to keep benefits competitive
The solution
Rydell partnered with their benefits broker and Benafica to explore an ICHRA model. Instead of chasing unsustainable renewals, they shifted to a defined contribution approach that kept competitive, ACA-compliant coverage, and many employees chose plans that fit better, sometimes for less.
- Defined, predictable employer contribution
- Plan choices that fit each employee’s life and budget
- Scalable across locations, states, and future growth
"We had one employee come in in the first group, and we dropped her premium by $750. Single mom of three kids. She was in tears of joy."
Want results like Rydell’s for your team?
Send us your census and current renewal, and we’ll model ICHRA against your real numbers.