The Linux Foundation Saves Over $450k On Healthcare Costs

PAIN POINT

The Linux Foundation, a growing non-profit with 80 employees, was spending more than $1.2M a year on employee health care. The foundation needed to migrate off its PEO to:

1. Optimize its health plans,
2. Mitigate rising health care costs while maintaining competitive benefits, and
3. Establish control over payroll and HR administration.
    

SOLUTION

Lumity used its proprietary risk model to analyze the foundation’s health data and unearthed a significant discrepancy between projected health care expenses and the rates the foundation was paying their carrier.

In the previous two years, the overall group health profile had dramatically improved. As a result, Lumity was able to negotiate lower premiums and a wider network plan, and cost savings were reduced without sacrificing coverage. Additionally, employees gained Lumity’s data-driven enrollment software to guide their health plan decisions and enroll in health savings accounts (HSAs) using a single login.

INITIAL RESULT

The Linux Foundation saved $450,000 on its health plans, which allowed it to allocate more resources towards hiring. An additional $100,00 saved in PEO licensing fees was funneled into employee HSA contributions. This drove HSA adoption from 6% to over 80%.

YEAR TWO UPDATE

The foundation forecast projected a further rate reduction for the following renewal, netting a further 10% cost savings with no compromise on coverage or plan design.