Healthcare Costs for Employers Offering Defined Contribution Benefits are Less Per Employee than the National Average
MINNEAPOLIS, March 9, 2012 /PRNewswire/ -- Defined contribution benefit solutions are reducing healthcare costs for both employers and employees, according to findings released today by Bloom Health at the National Business Group on Health's (NBGH) Business Health Agenda 2012 meeting in Washington, D.C.
Healthcare costs for employers using Bloom Health are 19 percent below the national average, Bloom's Head of Sales and Market Development Kevin Kickhaefer announced today at the annual NBGH gathering. Minneapolis-based Bloom Health directly provides defined contribution solutions to more than 75 employers representing 25,000 lives and also powers defined contribution private insurance exchanges for health plans nationwide.
Kickhaefer also presented data that show that employers are not the only ones benefiting from the defined contribution approach. According to Bloom Health findings, employees' payroll deductions for healthcare costs are as much as 29 percent lower than the national average for those whose employers offer their defined contribution private exchange solutions. In addition, workers whose employers make available to them defined contribution private insurance exchanges are experiencing lower premiums—$4,500, or 18 percent less than the national average, for single premiums and $11,700, or 22 percent less than the national average, for family premiums.
"It's clear to us that the defined contribution approach—whether it's through a private insurance exchange or a vast market of health plans—is a win-win for both employers and employees," Kickhaefer said. "At a time when companies need to remain competitive to attract top talent, while maintaining a sense of predictability when it comes to their healthcare expenses, defined contribution is proving to be an invaluable tool that also reaps rewards for individual employees."
Presenting alongside Kickhaefer, Vickie Bellinger, Manager of Benefits & Compensation of Key Safety Systems—which is using Blue Cross Blue Shield of Michigan's private exchange solution called GlidePath, powered by Bloom Health to offer employees a defined contribution private exchange—provided a first-hand account of the positive outcomes her company has experienced.
"We're not only helping our employees save money, but we're also giving them the opportunity to pick and choose the benefits that best fit their personal needs," said Bellinger. "We've found employees have a newfound appreciation for their employer contribution."
Kickhaefer also gave at the NBGH meeting a snapshot of Bloom's private exchange model, detailing how it connects employers to a health plan's suite of defined contribution offerings. Additionally, Kickhaefer detailed Bloom's recommendations engine, which uses a risk assessment algorithm and personality profile to customize individual benefit options.
About Bloom Health
Bloom Health is a leader in the defined contribution health benefits marketplace, committed to assisting employers of all sizes move toward an employer-sponsored system that has effective cost predictability for employers and increased choice and personalization for employees. Bloom Health was founded in 2009 and is headquartered in Minneapolis. For more information, visit www.gobloomhealth.com.
SOURCE Bloom Health