Redirect Health Becomes Go-To Source for Restaurants Seeking to Control Healthcare Costs, Meet Obamacare Requirements

Business Wire

Growing interest from restaurant industry looking for easy-to-understand, affordable healthcare solutions results in local, national chains turning to Redirect Health

PHOENIX--(BUSINESS WIRE)-- Challenged by slim profit margins and increased operating expenses, especially those caused by the Affordable Care Act (ACA), restaurants have started looking at smarter solutions to manage costs. Dozens of franchises and independently owned restaurants have turned to Redirect Health to improve the quality of healthcare, protect employees from rising costs and guard their revenues while maintaining Obamacare compliance.

Select locations of Denny’s and Wetzel’s Pretzels, as well as locally owned Café Napoli, Cheba Hut Subs, Deluxe Burgers, Mexx 32, Parlor Pizza, Nello’s Pizza, Richardson’s of New Mexico Restaurant Group, Rustlers Roost, Upper Crust Bakery and YC’s Mongolian Grill, totaling nearly 2,000 employees, are now offering their employees a new type of healthcare solution pioneered by Redirect Health, which utilizes a self-insurance model and cutting-edge care logistics process providing ease for the employer and employee.

Starting this year, Obamacare has required businesses with at least 50 full-time equivalent employees to offer their workforces healthcare. In an industry unaccustomed to such requirements, many restaurants have struggled. Profits have dived, and some owners have been forced to reduce staff hours to avoid ACA thresholds, which can negatively impact employee loyalty, productivity and workload.

“Growing their business and caring for employees shouldn’t be mutually exclusive for restaurant owners,” said Redirect Health CEO Paul Johnson. “Although Obamacare is putting serious strain on business owners, the restaurant industry is seeing that the traditional status quo insurance model isn’t working, so they’re applying their entrepreneurial spirit to seek out smarter solutions that are both economically and socially responsible.”

Redirect Health’s flagship offering, EverydayCare™, was developed with restaurants owners in mind. It meets the ACA’s Minimum Essential Coverage requirement and addresses the majority of peoples’ healthcare needs, such as treatment of coughs, colds, diabetes, asthma, pain, injury and other common ailments. It costs about $100 a month per person – a cost the employer or employee could absorb.

Interest from the restaurant industry reflects a larger trend in the hospitality, construction and agriculture sectors, which have a large number of support-level employees and fluctuating workforces. In 2015, Redirect Health experienced incredible growth as entrepreneurial businesses in these sectors introduced its affordable, high-quality and compliant healthcare plans. It also experienced a rare occurrence – 100 percent renewal rate among clients – validating that cost and common sense care are significant drivers to maintaining satisfaction.

Redirect Health is able to keep costs low without sacrificing quality because it’s care logistics team ‘redirects’ a patient’s care through the most efficient, cost-effective route. For instance, a procedure costing thousands at a hospital can be ‘redirected’ to a nearby clinic for a small fraction of the cost.

Companies interested in exploring EverydayCare can contact their broker or Redirect Health at (888) 995-4945 or nextsteps@redirecthealth.com.

About Redirect Health

Founded in 2013, Redirect Health helps entrepreneurial businesses and their brokers build affordable healthcare plans using a self-insurance model. All solutions comply with the Affordable Care Act, reduce administration costs associated with many traditional health insurance plans and enhance the employee’s health care experience. The company uses a process that quickly identifies the most cost-efficient route to address health care needs, enabling employers to significantly cut costs and reinvest their savings back into the business. More at redirecthealth.com.