How can our organization provide a diverse spread of benefit offerings and contributions to meet the varying needs of our employees?
Employee contribution levels can be a significant cost driver for employers if they inadvertently steer enrollees toward more expensive plan offerings. USI’s propriety, interactive contribution decision support tool models multiple scenarios and evaluates the impact to employers’ costs and employees’ plan selection.
Reconfiguring employee contribution levels can save employers an estimated 2% to 5% on net benefit costs by facilitating enrollment in the most efficient plans.
We’ve estimated the financial impact for you. Feel free to update the assumptions.
- Establishes actuarial values of plans to validate contribution amounts
- Simplifies budgeting, multi-year planning, and wage banding processes
- Benchmarks costs and contributions against the market and ensures compliance with ACA requirements
- Ensures appropriate spread of contributions to meet varying needs of employees
- Evaluates carrier rates or develops premium equivalent rates for self-funded programs
Contribution modeling typically requires a significant volume of “if/then” scenarios based on actuarial data and market benchmarks. Done by hand, the process can be incredibly time consuming for employers. USI’s contribution decision support tool integrates all the data necessary to help your company set appropriate contribution levels.
Recently, a USI client working with a limited budget expressed their need to reduce health care costs without cutting benefit levels. Our analytics team evaluated the client’s plan design structure and corresponding contribution levels, and determined that the contribution structure was disproportionately driving employees to the employer’s most costly plan offering. At our recommendation, the client added a second PPO plan with a smaller network and restructured the contributions to incentivize enrollment in the less expensive plans. As a result, 62 out of 190 total employees chose the lower-cost plans, reducing the client’s overall health care costs by $119,000.
USI’s contribution decision support tool is available at no cost to employers. To get started, we will just need a few pieces of information, including copies of your current plan design, carrier premium or premium-equivalent rates, and current employee contribution levels.
I’d like to explore further how USI’s contribution decision support tool can help us lower health care costs while preserving benefit levels for our plan members.
To get started, we will need just a few pieces of information, including copies of your organization’s current plan designs, carrier premium or premium-equivalent rates, and current employee contribution levels.