Containing plan costs, especially as health care rates climb, is a goal we are always working toward.
Appleton, WI (PRWEB) September 27, 2017
As Cypress Benefit Administrators releases cumulative cost results for the health plans it managed in 2016, the third party administrator (TPA) reports saving employer-clients a total of 49.5% off billed charges – $266 million of the $543 million invoiced.
The Midwest-based TPA has kept its annual health plan cost increases below the national average since 2011 and continues to do so by implementing a variety of tactics and benefit programs aimed at controlling expenses.
For 2016, Cypress’s top five methods for realizing the $266 million in self-funded plan savings included:
- In-network savings – $120 million
- Unsupported documentation – $34 million
- Coordination of benefits (COB)/ineligible participants – $20 million
- Inappropriate charges – $18 million
- Uncovered benefits – $14 million
“Finding ways to help employers save on health plan costs has been at the core of what we do since our first days in business,” explained Tom Doney, president and CEO of Cypress. “Containing plan costs, especially as health care rates climb, is a goal we are always working toward.”
Other tactics that added up to such significant savings in 2016 included diligent health claim review and dialysis management efforts.
Cypress’s Argus Claim Review achieved $4.3 million in savings by scrutinizing member health claims for errors and overcharges that led to adjusted payments. The TPA’s dialysis management program through partner firm Renalogic also resulted in $3.7 million in savings as it helped employers coordinate the appropriate plan language and manage the related high-cost claims.
“Cypress is fortunate to have so many best-in-class partners who share our vision for controlling plan costs on behalf of employers,” Doney shared. “To save a total of $266 million over the course of one year definitely takes a collaborative effort.”
For 2016, the average health plan increase was 7.2% across the United States. Cypress was able to keep this average increase to just 3.79% for its self-funded employer-clients.
About Cypress Benefit Administrators
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, Ore., Omaha, Neb. and Denver, Col. For more information on Cypress and its customized employee benefits, visit http://www.cypressbenefit.com.