We’ve been able to achieve this level of cost containment success by implementing several next-generation solutions and outside-the-box alternatives to the traditional methods of accessing care.
Appleton, WI (PRWEB) November 21, 2014
As the second largest expense facing employers today, medical plan costs went up an average of 6.4% across the United States in 2013.
Cypress Benefit Administrators – a leading third party administrator (TPA) in the self-funded industry – announced that it was able to avoid this large of a hike, containing its average medical plan cost increase to just 1.3% for the year.
Tom Doney, Cypress president and CEO, explained that the results noted in the TPA’s latest cost comparison report have created a win-win situation for employer-clients as they are able to offer their employees customizable, high-quality health benefits and keep related expenses in check.
“We’ve been able to achieve this level of cost containment success by implementing several next-generation solutions and outside-the-box alternatives to the traditional methods of accessing care,” Doney said. “This has led to many best-in-class partnerships and is allowing our clients to control their overall plan costs without compromising quality.”
In releasing the cost comparison data, Cypress reports that its average increase for medical plan costs from 2008-2013 was just 1.93%. The average increase among other administrators nationwide was 7.14% for this same time period.
Additionally, the report reveals that Cypress employer-clients averaged a per employee per year (PEPY) cost of $8,940 in 2013. The average PEPY cost nationally was $13,587.67 – a 34.21% difference.
“When you do the math, that’s an average savings of nearly $4,700 per employee in health benefits for the year,” Doney said. “Those savings can add up pretty significantly.” He added, “The success we continue to have in containing costs comes from a great combination of dedicated staff, innovative programs and strong partnerships.”
A privately held company headquartered in Appleton, Wis., Cypress Benefit Administrators has been pioneering the way toward cost containment in self-funded health benefits since 2000. The third party administrator (TPA) is the country’s first to bring claims administration, consumer driven health plans and proven cost control measures together into one package for companies ranging from 50 employees to thousands of employees. It serves employer-clients across the U.S. with additional locations in Portland and Salem, Ore., Omaha, Neb. and Colorado Springs, Col. For more information on Cypress and its customized employee benefits, visit http://www.cypressbenefit.com.
*PEPM and PEPY statistics include employer paid cost of medical and dental claims, administration fees, stop loss premiums and all other related costs. Annual cost statistics sourced from studies published by Milliman Medical Index; Aon Hewitt Health Value Initiative Database; and Towers Watson Health Care Trend Survey (2007-2013).