SquareTrade’s $700K Health Plan Savings
SquareTrade had been growing at a steady rate, reaching more than 400-employees in California and Florida, and it was time to get visibility into healthcare spending.
Each year, SquareTrade was getting 8-10% “trend” renewals on their health plans. But, without access to their claims data, the company had no way of determining whether the trend renewals were a fair measure of their group’s actual health risk.
For ease and efficiency, SquareTrade selected Lumity as a single point of contact for everything benefits related. Lumity would serve as the new broker of record and provide consulting expertise, plan design analysis, risk modeling, 1:1 employee decision guidance, benefits enrollment HR tech, and year-round employee support.
Using its proprietary risk model, Lumity analyzed SquareTrade’s aggregated and anonymized group information. Doing so revealed that their group had had an extremely favorable health risk score for years. The data provided a huge advantage during rate negotiations for SquareTrade’s upcoming plan renewal.
Once open enrollment meetings were completed in-person and online via webinar, each employee was able to use Lumity’s platform to access personalized plan recommendations based on their estimated health expenses and choose the health plan that best matched their current in-network providers and Rx coverage. The personalized recommendations ensured employees were not over- or under-insured for their needs.
Using the risk score and favorable claims performance, Lumity was able to negotiate SquareTrade’s rates from an annual spend of $3.2M to $2.5M. The 20% savings ($700k) were achieved while improving benefits.
SquareTrade’s team was able invest even more in employee recruitment, engagement, and training. And, going forward, they have ongoing access to claims visibility and Lumity’s health expenses analytics and insights – ensuring they have a real-time snapshot of company health risk and ongoing claims performance.
Employers should never, ever be going blind into their annual renewals. The insights Lumity provided enabled our team to see just how much money we were leaving on the table. I can’t begin to tell you how valuable it is to us as a small HR team to have a team like Lumity that deeply understands both benefits and technology to drive a modern, competitive benefits program. Lumity’s software and dedicated service provides the kind of simple, personalized experience that allows a bi-coastal company