SquareTrade’s $700K Health Plan Savings

PAIN POINT

SquareTrade had been growing at a steady rate, reaching more than 400-employees in California and Florida, and it was time to get visibility into healthcare spending.

Each year, SquareTrade was getting 8-10% “trend” renewals on their health plans. But, without access to their claims data, the company had no way of determining whether the trend renewals were a fair measure of their group’s actual health risk.

SOLUTION

For ease and efficiency, SquareTrade selected Lumity as a single point of contact for everything benefits related. Lumity would serve as the new broker of record and provide consulting expertise, plan design analysis, risk modeling, HR tech guidance, and year-round employee support.

Using its proprietary risk model, Lumity analyzed SquareTrade’s aggregated and anonymized group information. Doing so revealed that their group had had an extremely favorable health risk score for years. The data provided a huge advantage during rate negotiations for SquareTrade’s upcoming plan renewal.

RESULT

SquareTrade reduced its rates from $3.2M to $2.5M annually. The 20% savings ($700k) were achieved while improving benefits, and SquareTrade was able to invest in more employee recruitment, engagement, and training