How can our organization provide a diverse spread of benefit offerings and contributions to meet the varying needs of our employees?
Many employers fail to provide a diverse spread of benefit offerings. Employers should offer two or three plans with a significant spread of actuarial value to meet the needs of a diverse employee population. USI’s actuarial value calculator evaluates plan design structure to ensure the appropriate distribution of plan offerings.
Restructuring your health plan designs to reflect an appropriate spread of risk can save your organization an estimated 1% to 3% in net benefit costs.
We’ve estimated the financial impact for you. Feel free to update the assumptions.
- Leverages USI's proprietary Actuarial Value Calculator tool
- Establishes actuarial values of existing plans and identifies an appropriate range of plan designs to meet a wide range of employee needs
- Helps meet the financial and health care needs of a multi-generational workforce
- Integrated with USI Benefits Benchmarking Study to ensure market competitiveness
- Develops premium equivalent rates for self-funded programs
Although plans may appear diverse due to differing copay, deductible, and co-insurance amounts, many employers offer plans within too narrow a band of actuarial value.
Recently, a USI client offering fully insured HMO and PPO health plans at a total cost of $2.1 million expressed their need to reduce 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 doesn’t charge a fee to model plan designs. The value of the actuarial services provided is estimated at $2,500. 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.
I’d like to explore further how USI’s actuarial value calculator can help our organization provide a more diverse spread of benefit offerings.
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.