In May of last year, we released an article called “Using an HSA to Protect Against High Drug Costs,” discussing how one client used a Health Spending Account (HSA) to offset the introduction of a drug co-pay and help control escalating drug costs.
Upon our initial consultation, we estimated that this strategy would save the client approximately 10% on their overall plan cost. This was achieved by reducing prescription drug coinsurance from 100% to 80% and using the savings to add an HSA for each employee. This enhancement gave the employees the choice between using their HSA funds to pay their drug coinsurance or to use the additional funds for items not covered under their flexStyle plan. Benecaid participated in the roll out by co-hosting webinar sessions to educate members on the plan changes and ensure an easy transition.
Here’s an update:
Fast forward a year later and the overall cost of our client’s plan has decreased by 11% and the average cost per employee has decreased by 15%, year over year. Overall, their plan cost went from $642,425.42 to $573,973.41, which includes the additional cost of the Health Spending Accounts (HSA).
- The year over year plan decreased by 11% overall, resulting in a savings of almost $70,000
- The average cost per employee decreased by 15%
- This solution provided added flexibility for employees – customizing their coverage to the individual needs of their families
- Benecaid was able to successfully integrate with The Trillium Drug Program – employees with high cost drug claims are now able to access government funding by reaching the out-of-pocket deductible
- Overall, this was a positive experience for both employees and plan sponsors
For more information on this solution or to discuss how we can help your clients, please contact your Benecaid Benefits Consultant or send us an email at firstname.lastname@example.org.