More Firms Going out to Competitive Bid and Leveraging HighRoads’ Consulting and Technology to Search for Lowest Cost Plans
BOSTON--(BUSINESS WIRE)-- As health care reform continues to negatively impact businesses’ bottom line, HighRoads, the industry leader in employer health care regulation compliance, is finding an increasing number of companies using HighRoads’ procurement and renewal service to secure more competitively priced plans.
“Businesses want to be able to preserve competitive health care coverage for their employees. At the same time they need to be fiscally responsible. That means seeking the best coverage for their employees at the lowest cost,” said Josh Miley, principal, H&W Consulting Practice at HighRoads. “Since the New Year, we have seen a dramatic uptick in employers looking to competitively bid their health plans. HighRoads’ automated procurement and renewal service is helping these firms preserve robust health care benefits while realizing cost savings.”
Health care costs have been rising steadily. According to the U.S. Department of Labor, the average cost for health benefits was $2.08 per hour worked in private industry (7.5 percent of total compensation) in March 2010. In March 2000, employer costs for health benefits averaged $1.09, or 5.5 percent of total compensation. Projections for 2011 anticipate more costs: The average 2011 trend increase for large to mid-sized employers was 8.75% with an average 2011 gross per employee per year (PEPY) of $9,321, added Miley.
In a recently published study by HighRoads, 50% of human resources professionals and benefits managers are noting that employees fear health care reform will increase their cost of coverage, Miley added. “This, combined with the additional complexity of health care reform regulation for employers, is a compelling reason to take health and welfare plans out to bid this year to assure that both plan costs and designs remain in check,” said Miley.
“HighRoads' competitive bidding platform is extremely valuable in helping organizations find the best possible health care plans at the right price,” said Peter Hayes, former Director, Associate Health & Welfare, at Hannaford Supermarkets “By using HighRoads' streamlined, automated procurement technology, companies are also able to realize an increase in internal efficiencies and a reduction in administrative costs,” said Hayes.
HighRoads health and welfare consulting challenges the traditional delivery model which maximizes billed hours and commission dollars with an approach that leverages its industry-leading technology to not only drive health plan efficiency but also consulting efficiency. This new approach results in both a reduction of health care spend and a reduction in HR consulting costs by 30% or more without sacrificing quality of benefits to employees.
Over the past 11 years, HighRoads has perfected the collection and analysis of qualitative and quantitative data resulting in the most effective health and wellness plan procurement and renewal process. Standard features include a reverse auction, scoring and weighting of questions, data, network discounts and disruption analysis. Custom reporting and decision support tools automatically analyze and score vendor proposals against pre-determined criteria in order to determine the best vendor, the best plan or service, and the best price.
The world’s leading employers choose HighRoads to gain complete control over their health care costs and compliance. With HighRoads’ service, employers have online access to benefits plan information and pricing, competitive benefits benchmarks, and complete benefits supply chain management. The privately-held company is headquartered in Woburn, MA. For more information, visit www.HighRoads.com.
KEYWORDS: United States North America Massachusetts
INDUSTRY KEYWORDS: Health Hospitals Other Health Professional Services Human Resources Insurance