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How ThousandEyes Achieved 15% Health Plan Savings
ThousandEyes was facing double-digit employee growth and a 20% renewal on their small group health plans. Their existing contribution incentives favored an HMO; but, given their young and healthy demographic, the company was ripe for a plan redesign with a defined contribution model.
They were ready to tune their benefits program—providing they could retain comparable coverage for their people.
Lumity analyzed ThousandEye’s current plan structure, rates, and employee information. An employee-by-employee breakdown of current age-banded rates versus large group rates confirmed that it was time to transition. Lumity moved forward to secure large group PPO plans with coverage that was comparable to their existing HMO base plan.
In order to provide equally weighted plan choices, Lumity calculated optimal employer contributions keeping the PPO plans value-neutral. This resulted in specific Flexible Spending Account (FSA) and Health Savings Account (HSA) contributions that created the right incentives for employees to choose a health plan based on their expected healthcare needs.
ThousandEyes saved 15% on comparable health plans, added competitive PPO choices, and redesigned employer HSA contributions. The savings allowed ThousandEyes to offer a “free” plan: they now cover 100% of all high-deductible PPO premiums.
As a team of one, Lumity’s data-driven benefits solution and expert support have helped me manage our benefits and increase employee satisfaction. They literally came in at the last minute, helped us fight a high renewal, and structured our benefits to scale with our growth this year.
Oct 30, 2018|