Case Study: Foster Holdings Inc.

Industry Business Services
Location Pennsylvania
Full-time employees 6


For as long as Tim Ryan, Manager of Accounting, has worked at Foster Holdings Inc., they have always provided a substantial health benefit package to their employees. However, with healthcare costs on the rise, they wanted to find a way to reduce their insurance premium costs without dropping the top-notch insurance that their valued employees were accustomed to receiving.

Tim found PeopleKeep online and was encouraged by the multitude of positive reviews. During an initial call, PeopleKeep’s benefits advisor discussed how a group coverage health reimbursement arrangement, or GCHRA could allow Foster Holdings Inc. to continue providing their current generous group coverage insurance to employees while lowering the company’s overall health benefit costs. After some consideration, Foster Holdings Inc. signed up with PeopleKeep.

With the addition of the GCHRA, Foster Holdings Inc. has a participation rate of 100%. All six employees have responded positively to the reimbursement process and the extra flexibility it provides. Additionally, Tim only spends five minutes a quarter administering the benefit, which is a dramatic improvement to the hours he spent in the past.

“We were looking to reduce overall costs for healthcare while still offering our employees a generous benefit package.”


Tim Ryan

Manager of Accounting


participation rate


minutes per quarter


in projected annual savings

“The positive reviews we saw on PeopleKeep were really attractive to us and after speaking with your sales team, we felt encouraged to sign up for our health benefit.”


The company

Foster Holdings, Inc is a 5th generation private family office located in Pittsburgh that services high net worth families and provides accounting and tax services as well as estate and investment planning. They manage $56 million of regulatory assets for several client accounts.

The challenge

Since Tim Ryan began working at Foster Holdings Inc. almost 19 years ago, the employee health benefit package was very generous. The company had used the same insurance company for years and had always paid 100% of employee premiums and offered a high-end plan with no deductibles.

However, during the past year, with healthcare costs on the rise, Foster Holdings Inc. started searching for an option that would let them keep the group coverage plan that their employees were comfortable with while reducing the money they spend on premiums and deductibles. Additionally, at the time, only the president of Foster Holdings Inc. was receiving direct reimbursements for medical expenses whereas employees received a separate $2,000 a year to use on out-of-pocket expenses but the extra amount was taxable as wages. Foster Holdings had hoped to implement a formal tax-free reimbursement option for all employees, not just the president. Since they are a small company, their employees are used to being taken care of to the highest degree so they were the organization’s main decision-driving force.

The solution

Tim searched online and came across PeopleKeep as the only option that met Foster Holdings Inc.’s specific criteria. After reading through all the positive reviews, Tim decided to schedule a call with PeopleKeep’s benefits advisors. He learned that a GCHRA benefit could be layered alongside their group coverage insurance to minimize their premium costs. Employees would be given a set allowance to supplement their group health plan, making them eligible to receive tax-free reimbursements for expenses and gain greater control over their health benefits. Upon hearing about this attractive option, Foster Holdings Inc. signed on with PeopleKeep.

"PeopleKeep is very affordable. In fact, they're extremely affordable."

Whereas some employers offer a GCHRA benefit alongside a high deductible health plan to save even more money, Foster Holdings Inc. decided to select a low deductible health plan so the insurance would be as similar as possible to the employees’ previous plan and still remain appealing. Allowances were decided based on their current plan’s annual deductible for a single person, which made for easy comparison, and they decided to allow reimbursements for premiums, copays, coinsurance, and deductibles. Although introducing the GCHRA was the first time they instituted a deductible for employees with an increase in copayments and coinsurance, the allowances helped offset the change. The company is now able to save more money than before while keeping the group coverage that employees loved with the added bonus of tax-free reimbursements.

The results

After adding in the GCHRA, all six employees are participating in the new health benefit. Tim is projecting savings of $3,000–$4,000 a year, which will be funneled back into the company to offset other employee benefits costs. Foster Holdings Inc. is seeing several reimbursement submissions throughout the year and employees like the new capability and have only voiced positive feedback. Working with PeopleKeep’s award-winning support team is very easy for Foster Holdings and the onboarding process went smoothly for both the employees and Tim, who is the benefit’s administrator.

"The administrative time is so small with PeopleKeep, it's almost immaterial."

As administrator, Tim appreciates that PeopleKeep prioritizes privacy. When employees submit their receipts for review, PeopleKeep’s documentation review team evaluates and verifies the expense. The PeopleKeep software then emails Tim letting him know that reimbursements need to be approved and paid. This process is very appealing employee privacy and ease of verification are key to Tim.

“It was always painful waiting for receipts at year end. But now we have a system. It’s great to see reimbursement request notifications pop up automatically from PeopleKeep”

Before Foster Holdings Inc. had PeopleKeep, when the president was getting reimbursed, Tim was manually recording and processing all the expenses with physical receipts at the end of the year and it took him a very long time to manage. Now Tim logs into PeopleKeep, reviews his admin dashboard and pays out reimbursements once a quarter in a quick five minutes. With PeopleKeep’s help, the GCHRA benefit has been successful for Foster Holdings Inc. and they are optimistic the benefit will positively impact retention as well as hiring in the future.