According to a press release, the provider of benefits plan information and pricing, benefits benchmarks, and benefits supply chain management claims American corporations can slash their overall health insurance costs by 16% to 18% while preserving employee benefits programs by letting plan providers compete for business. The study not only found that bidding stabilized or decreased the ratio of health insurance increases, but many employee benefits plan offerings were improved by the bidding process.
While plans that are put out to bid are generally 16% to 18% less expensive than those that are renewed, the plan deductibles remain the same, the study found. However, companies that put their plans out to bid often see millions of dollars in cost savings without reductions in coverage or increases in deductibles, the announcement said.
Finally, according to HighRoads, those companies that take their plans to bid tend to be higher performing than those that simply renew their employee plans.
More information about HighRoads is at www.highroads.com .