SIMPARA led Keystone Technologies to a 25% reduction in total spend over 2 years, 50% reduction in deductibles in the second year, and a $60,000 insurance refund. Keystone Technologies is an information technology (IT) services firm. Keystone wanted to extend health benefits to all of its employees but was facing a 55% increase in cost from the insurance provider under the incumbent plan. The company had three main goals: 1) save money on healthcare spending, 2) reduce employee’s share of the cost, and 3) minimize member disruption. Prior to changing its plan, insurer claimed Keystone Technologies was spending 62% above premiums collected (162% loss ratio), after the plan change, they reduced spending by 40%. Adam helped Keystone manage costs by implementing direct contracting, bundled procedures, required second opinion services before undergoing surgery, transparency tools, and brand/specialty pharmaceutical solutions. Together, they reduced health spending by 10% within the first year, and 25% over two years on their yearly costs per employee from their expected costs of $12,000 per employee per year (PEPY) to their actual costs $9,441 PEPY. Under this new plan, if covered claims are less than what the employer paid for, the employer receives a refund for unused claim liability at the end of every year. Since changing plans, Keystone has a return worth $60,000, an average of $2,000 PEPY.
HOW WE DID IT: KEYSTONE TECHNOLOGIES LEADS NATIONAL WEBINAR
