How to Take the Guesswork out of Employer Health Plan Design

How to Take the Guesswork out of Employer Health Plan Design

Employers are walking a fine line these days.

They've got to try to keep rising health care costs under control, so they can continue to afford to offer coverage to their employees. Meanwhile, they've got to make sure the coverage being offered is providing sufficient value to keep employees happy in a time where job choices are at a historic level of abundance.

It's a complicated and high-stakes balancing act—one that requires organizations to constantly evaluate and refine their health plan design strategies. Supported by their brokers and consultants, most employers go through an annual exercise of figuring out what changes they need to make to their plans to contain health care costs without compromising coverage.

Should they raise employee premium contributions? Apply spousal surcharges? Lower in-network deductibles? Change copay amounts for certain services?

These represent only a fraction of the types of questions that can go into formulating health plan designs, which have largely increased in complexity in recent years.

Without the right tools to enable a comprehensive yet simplified approach to health plan design, it can be a time-consuming and labor-intensive process that yields less than the desired result – or even makes things worse – and often feels like guesswork.

That's why Benefitfocus created a new Plan Modeling tool within our benefits data analytics solution.

Benefitfocus data analytics help employers and brokers evaluate health plan design changes.

Integrated into BENEFITFOCUS® Advanced Analytics, Plan Modeling allows employers, brokers, advisors and third-party administrators to quickly and accurately evaluate changes to health plan design. With the ability to fully re-adjudicate current claims data, users can thoroughly review current year plans, test different scenarios and analyze the financial impact of any plan design changes.

Plan Modeling enables:

More Accurate Cost Forecasting

By fully re-adjudicating current claims data across a comprehensive set of plan design variables, and with the ability to incorporate inflation, employers and brokers can better project future health care costs.

Significant Time Savings

Designing health plans manually can be time-consuming and confusing. With Plan Modeling, employers and brokers can build and test new plan scenarios in a matter of minutes.

Greater Visibility on Financial Impact

Plan Modeling provides an end-to-end financial analysis of current health plan versus alternate design, enabling employers and brokers to understand the full impact any changes will have on both employer and employee spending.

Learn more about data-driven employer health plan management in the on-demand webinar, 3 M’s to Contain Health Care Costs.