HD Supply is a leading industrial wholesale distributor with an expansive network of over 100 warehouses and 12,000 associates spread across the U.S. and Canada.
“HD Supply has a very diverse population of associates,” says Recharda Graydon, Senior Benefits Manager at HD Supply. “We have white-collar associates who work in the office, but we also have associates who work in warehouses and drivers out in the field.”
Graydon says spiraling costs in their claims data, especially related to musculoskeletal and bariatric procedures, inspired the business to look for a way to contain costs while connecting associates with quality care. They also recognized that part of the reason employees may not be accessing the best care could be related to out-of-pocket costs.
“We started looking for a solution because surgery is really expensive, and unfortunately, some people avoid getting care because they’re scared of the cost,” Graydon says.
Beyond cost containment, Graydon says it was important for HD Supply to find a partner that could accommodate their workforce spread across all 50 states.
“We have to solve for our full population,” she says. “We have associates in metropolitan areas where access is easy, but we also have associates in rural areas. It was absolutely paramount to not only find an affordable solution but one that improves accessibility for all associates, no matter where they live.”
Partnering with Lantern
Graydon says Lantern was the best fit for controlling costs and providing coverage for HD Supply associates and their families.
HD Supply waives all out-of-pocket surgical costs for members on their PPO plan, while members on HDHPs pay no cost after meeting the IRS minimum deductible requirement.
The Lantern network includes leading surgical sites across the country, placing 98% of Lantern members within driving distance of their surgeon.
Surgeons undergo thorough, individualized vetting. Lantern negotiates rates 50-60% lower than carrier rates on average, helping employers like HD Supply save significant money on surgeries.
“Having a solution like Lantern removes those barriers and helps our associates access affordable, high-quality care,” Graydon says. “Because again, some associates will skip care either due to costs or access.”
Care Advocates Provide Support
When an associate needs surgery, members are connected with a care advocate to offer guidance at every step of the process. The advocate helps by answering questions about the member’s benefits, providing coordination and advocacy, and booking hotel rooms and transportation.
Lantern care advocates also help members seek second opinions and understand if surgery is truly the right choice. In fact, Lantern providers recommend against surgery 20-30% of the time.
“We’ve had associates who spoke with a care advocate and found out they had other options,” Graydon says. “Having the care advocate as a resource has been a big help, and the data shows we’ve seen savings just from people utilizing other solutions outside of surgery.”
A “Fantastic Partner”
Now years into the partnership, HD Supply associates rave about the benefit. Graydon’s team collects feedback from associates who use the benefit, and she says employees frequently voice their appreciation when she visits teams in the field.
“They share their success stories about how they’re able to get the care they need, and that really means a lot to us,” Graydon says. “It lets us know the solutions we put in place really work for our associates and their families.”
Graydon says Lantern has been a fantastic partner, and she appreciates how the company values her feedback.
“One of the things I really like about Lantern is their desire to innovate and listen to their clients. They’re always coming to us to say, ‘How do you like this?’ or ‘We have something fresh to help engage your associates,’” Graydon says. “It helps to keep the partnership strong, because they’re not only collecting the feedback but actually implementing what they receive from their clients.”
Over $3 Million in Savings
HD Supply chose an innovative solution like Lantern to reduce their spending, and Graydon says the benefit delivers on the promise.
“Lantern definitely helped us to decrease our spending. The data shows we’re saving money and associates are using the benefit. We’ve definitely seen a return on our investment, and it has increased over the years,” Graydon says.
In 2023, Lantern saved HD Supply over $1 million on surgical costs. HD Supply has saved more than $3 million since first launching with Lantern.
“If you’re considering a benefit like this, start the initial discussion to learn about the ease of implementation and the cost savings your company can take advantage of,” Graydon says. “Lantern fills a need in the market by offering access to quality surgeons at an affordable cost.”
