Boston - Results from a study conducted by HighRoads, a provider of benefits lifecycle management (BLM) solutions, show that employers can use competitive auctions to provide health benefits more affordably. Its first annual price elasticity survey shows that using a transparent bidding environment reduces contract costs by more than 15%, on average.The survey is based on the outcomes of nearly 50 request-for-proposal (RFP) processes by companies with 5,000 employees or more. On average, vendors revised bids two to three times to win a company's business, reducing fees by 7% to 21% for fully insured and self-insured medical, dental, life, disability and other benefits plans.
"CFOs and HR executives often feel powerless to control double-digit health care cost increases, especially now as procurement season heats up," says Paul Daoust, chairman and CEO of HighRoads. "Our survey shows that companies don't have to simply accept these increases - they can use the power of the marketplace to protect workers' benefits and meet shareholders' mandate to govern this leading cost concern."
Source: HighRoads Inc.
