The Linux Foundation's Data-Driven PEO Migration

The Linux Foundation was spending more than $1.2M a year on health plans and benefits for their 80-person group. As the headcount approached 100 for the next year, the company was looking for ways to improve risk management, optimize health plans, and mitigate rising health plan costs without compromising the quality of their competitive benefits.

Lumity’s team analyzed Linux’s health data and discovered a significant discrepancy between projected health care expenses for the company and the rates they were getting charged by their current carrier. The analysis conclusively determined the overall group health profile had improved dramatically in the last two years - a critical insight the company was not-equipped to discover on their own. As a result, Lumity was able to negotiate lower premiums and a wider network plan, providing Linux a strategic advantage in driving cost savings without sacrificing coverage.

Working with Lumity, The Linux Foundation saved $460,000 on their health plans by optimizing plan design and contribution incentives. The company funneled the cost savings back to the employees in the form of higher premium and Health Savings Account contributions.

Employees who qualified and elected Health Savings Accounts went from less than 5% to over 50% of employees during open enrollment as a result of selecting plans with Lumity’s online plan recommendation and automated enrollment software.

As Linux’s dedicated benefits consultant and broker, Lumity’s proprietary risk analysis, SaaS platform and services were available to The Linux Foundation at no additional cost.

Lumity made it easy for us to migrate off Trinet, saved us 37% in apples-to-apples coverage, and made our employees better off in the process. We can allocate more resources to hiring with the $450,000 we saved. It’s time a company like Lumity stepped in to help employers and employees use data to inform these decisions.

Jim Zemlin
Executive Director

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Want to Learn How A Transition From PEO Would Work For Your Company? Schedule a Free Benefits Consultation Today.