NFP, an insurance broker and consultant that provides corporate benefits and retirement solutions, has introduced its COVID-19 Cost Impact Model. In partnership with Milliman, NFP has also developed MedFactor, a proprietary plan value modeling tool.
The NFP COVID-19 Cost Impact Model is designed to support employers as they assess the effects of the pandemic on their benefit costs and make decisions on potential plan adjustments that align with their overall benefits strategy. It uses proprietary situation modeling to project future infections, testing, diagnosis and treatment. Through a comparison of an established baseline of testing and positive infection rates in a client’s state and country, the model can project estimated costs.
The modeling scenarios address testing and treatment costs for up to 180 days to ensure reliable projections. NFP will update the model as new information and data surrounding COVID-19 become available, ensuring projections reflect the application of the most relevant information.
MedFactor allows NFP to estimate the relative value of plan design changes. By entering a client’s base plan features and contrasting those features with a proposed alternative, NFP can calculate the percentage change in actuarial value. This provides employers with insight on the effect of proposed changes and confidence in making decisions.
“In an environment with so much uncertainty, there is tremendous value in tools that use data to help guide us to the right decisions,” says NFP chairman and CEO Doug Hammond.
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