In its announcement, ADP said this tool will be integrated with its Web-based benefits enrollment application to allow employees to evaluate health care plans based on individual medical needs and out-of-pocket expenses. Based on covered participants’ medical histories and current health status, the tool will forecast employee expenses under each of the health care plans available, and help to identify costs that can be funded by a flexible spending account (FSA), health reimbursement account (HRA), or health savings account (HSA).
Employees who have access to ADP’s benefits enrollment Web site through their employer will receive their cost model using the following steps, according to the announcement:
- Users create a profile for each person covered under the health plan, including information on each person’s geographical location, age, gender, health status and use of prescription medication. The profile is used to forecast the annual health care needs of the employee and his/her dependents, and a range of costs associated with any treatment.
- Users then select healthcare plans to evaluate.
- An overall cost for each plan is provided that factors in deductibles, coinsurance, co-payments and even the employee premium contribution.
- The tool can adjust these cost estimates based on contributions made to a HSA, HRA, or FSA.
ADP’s provides its clients with step-by-step instructions for the cost modeling tool and a help option on every page on its benefits enrollment Web site. Clients that outsource their call center with ADP can also have employees speak directly with a benefits representative.
ADP has provided the tool to a number of pilot clients for their benefits enrollment period this fall. All ADP clients will be provided the tool for next fall’s benefits enrollment period.