Member data shows a strong shift toward employees purchasing consumer-driven health plans
MINNEAPOLIS, Feb. 14, 2011 /PRNewswire-USNewswire/ -- With employers' annual health care costs projected to rise to $10,730 per employee in 2011, many businesses faced difficult decisions when paying for their employees' health insurance benefits this past year. But for nearly 25 employers, 2010 marked the end of out-of-control health care costs and one-size-fits-all decisions thanks to Bloom Health's unique defined contribution approach to health benefits management.
"Bloom Health brought an end to increasing premium hikes for our company and inadequate health insurance plan options for our employees," said Amy Habedank, Human Resources Manager at Pinnacle Services. "With Bloom, our employees have been able to select health insurance plans that meet their families' needs, and in some cases, they have even had additional money left over for other medical expenses. Instead of anguishing over the enrollment process, we can now take comfort in a defined and predictable health care spend and focus our attention on company growth."
Bloom Health first helps employers determine an appropriate amount to spend on employee health benefits, taking into consideration a target health care budget and employee needs. Employers then allocate pre-tax dollars on behalf of each employee into individual Bloom Health accounts. Next, employees complete Bloom Health's user-friendly health, financial and personality survey – the results instantly generate a custom list of recommended health insurance plans, wellness programs and other related services that match the employee's specific needs. Then, employees can purchase the plan of their choice using funds from their Bloom Health account.
"Picking a health insurance plan was a refreshing change this year with Bloom," said Kari Harrisville, an employee at Digineer. "It was nice to have multiple insurance plans to pick from that were tailored to the needs of my family versus the company as a whole. The process was easy, and there was a live person available to answer my questions before I picked my insurance plan. Buying my own plan was actually rewarding, something I never thought I'd say about health insurance."
Upon surveying its members, Bloom Health earned a Net Promoter Score (NPS) that is 26 points higher than the industry average. An established benchmark of consumer satisfaction, NPS is calculated by asking members to rate products, services and brands on an 11-point scale in order to determine the percentage of brand promoters versus brand detractors. The company's high NPS within the industry is a result of its focus on creating an experience that resolves common open enrollment confusion and engages consumers by providing customized advice and best-fit health insurance plan options.
Transparency and Trends
Based on data from Bloom Health members' purchasing decisions in 2010 and 2011, there's a strong shift toward consumer-driven health plans. Sixty-five percent of members purchased a Health Savings Account (HSA) plan; two percent purchased a high-deductible plan, and 33 percent purchased a standard co-pay plan. Additionally, Bloom Health's website provides real-time data on members' health plan selection by carrier preference.
"All health insurance plans are not created equal – something many consumers are discovering for the first time as they're able to take more control over their health care decisions and dollars," said Jill Prevost, head of customer experience at Bloom Health. "We're glad we can be an independent resource to help simplify a complicated process. We're equally as excited about how many employers have quickly resonated with our defined contribution approach to health benefits management. It's been a whirlwind six months since our solution went live, and 2011 is shaping up to be an equally great year."
To view Bloom Health's member selection data or to learn more about its defined contribution approach to health benefits management, visit www.gobloomhealth.com.
About Bloom Health
Based in Minneapolis, Bloom Health helps employers of all sizes and industries better define and control their health care spending. Bloom then guides employees through the complex world of health insurance, helping them find the right health plan for them and their families with its proprietary search and recommendations engine. Bloom Health was founded in 2009. For more information, visit www.gobloomhealth.com.
SOURCE Bloom Health