We work hard to keep plan cost increases to a minimum for our employer-clients, and the fact that we were able to contain them to less than 1% last year really shows this commitment.
APPLETON, Wis. (PRWEB) May 31, 2018
Releasing its annual cost trends data, Cypress Benefit Administrators has announced that the average cost increase for the health plans it administered in 2017 was contained to just .69%. The average increase for plans on a national level was 5.93%.
The data show that the third party administrator (TPA) was able to continue its long-time success in keeping plan cost increases under national trend. Cypress’s average increase over the last six years – 2012 to 2017 – is 1.44% compared to 6.25% for plans nationally.
“We work hard to keep plan cost increases to a minimum for our employer-clients, and the fact that we were able to contain them to less than 1% last year really shows this commitment,” said Tom Doney, president and CEO of Cypress.
In 2017, the average Per Employee Per Year (PEPY) cost for Cypress clients was $9,809, while it was $17,363 for national plans. That represents an average PEPY savings for Cypress plans of $7,554 – or $377,700 in savings for a company of 50. On top of that, the average PEPY cost increase from 2016 to 2017 for Cypress-administered plans was only $68 in comparison to $972 for national plans.
“The per employee increase from last year averaged only $6 per month for Cypress plans, which is pretty rare to see in the industry as care costs continue to rise significantly,” Doney said.
Cypress continues to be proactive about working with employer-clients to control their health plan costs. The TPA offers a variety of employee benefit solutions in building customized self-funded plans and puts particular emphasis on managing health claims. For 2017, Cypress was able to negotiate $4.3 million in total health claim savings on behalf of the self-funded plans it manages.
“With the way costs have been going up in health care, it’s important to keep a watchful eye on all of the spending associated with your benefits plan,” Doney explained. “This kind of diligence is a big part of what keeps Cypress’s plan trend increases well below the national average year after year.”
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 and Salem, Ore., Omaha, Neb. and Denver, Col. For more information on Cypress and its customized employee benefits, visit http://www.cypressbenefit.com.