Results from a study conducted by HighRoads, the leading provider of benefits lifecycle management (BLM) solutions, demonstrate that employers can use competitive auctions to provide quality health and welfare benefits more affordably. Its first annual price elasticity survey shows that using a transparent bidding environment reduces
contract costs by more than 15 percent, 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 2-3 times to win a company´s business, reducing fees by 7-21 percent 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 healthcare cost increases, especially now as procurement season heats up," said 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´ mandates to govern this leading cost concern."
Information and Insight Delivers Cost Control
HighRoads´ collaborative BLM solutions provide unprecedented levels of visibility to information across multiple plans, processes and transactions to support informed decision-making and uncover opportunities for streamlined management. This insight enables employers and consultants to provide the highest quality employee health and welfare benefits at substantially lower costs.
Today´s benefit RFP processes are incredibly resource-intensive, consuming staff time and relying heavily on paper-based workflows because proposals come in varying formats. With HighRoads´ solution, customers can conduct the entire RFP process online, from the creation of a questionnaire to the acceptance of vendor responses. Bids can be easily weighted, scored and compared to support fast, informed decision-making. In addition to compelling vendors to offer better prices, online RFPs:
About HighRoads
HighRoads, Inc. (www.HighRoads.com) is the leading provider of Benefits Lifecycle Management. Its technology-based solutions and services provide visibility and enable collaboration throughout the design, procurement, management and communication of employee benefits plans. HighRoads´ comprehensive solutions for managing the benefits supply chain saves large employers millions of dollars in benefits costs without sacrificing quality. Clients include some of the world´s largest companies, such as Toyota, Staples, and Watson Wyatt. Founded in 1999, HighRoads is a privately-held company that is headquartered in Woburn, Mass.