A 3,250-employee self-funded organization was hit with healthcare costs rising more than 15% per year. The CFO needed to get ahead of the financial impact on both the company’s budget and its employees.
The challenge was to gain clear insight into healthcare spending and identify actionable ways to reduce costs while preserving quality of care.
The Precare solution was the only platform showcased to the federal Health Policy Team during the creation of the Transparency in Coverage Rule. Its innovative approach set the benchmark for today’s national transparency standards.
Demystifying healthcare expenses with clear, actionable insights
Providing transparent data so consumers control their healthcare decisions
Every feature designed with the end-user in mind
Maintaining highest standards of accuracy and reliability
As healthcare economist Uwe Reinhardt noted, the main reason medical costs are higher in the U.S. than other industrialized countries is higher prices. Healthlock's data shows that differences in prices paid for the same exact service between in-network providers can vary by 5x to 20x.
These providers were often less than 1 mile apart, revealing massive wasteful spending within the group's annual healthcare spend.
Working alongside the group's benefit consultant, historical medical claims were uploaded to Healthlock's Advisor Dashboard and analyzed through Healthlock's proprietary claims data engine.
This group overspent by 63% due to high-cost providers
The Claims Hindsight Analysis runs a line-by-line claims comparison, cross-referencing the group's actual experience against the largest commercial claims database in the country. This revealed every instance of waste, defined as the amount spent on care in excess of what could be spent for the same care at the most cost-effective facility at the same or higher quality of care within the same geographic area.
Driving down healthcare costs requires more than price transparency, it requires increased healthcare consumerism. Healthlock assessed the group's plan designs to determine if they would drive employee engagement to mitigate wasteful spending.
Score: 47
Employer-funded HSA with MyMedicalRewards incentives
Score: 23
HRA allowance with MyMedicalRewards incentives
Score: 9
Traditional PPO with MyMedicalRewards incentives
Healthlock's Customer Success team engaged with leadership, providing access to the Employer Dashboard and MyMedicalMetrics™ to monitor healthcare utilization and spend.
Training ensured employees could access MyMedicalShopper™ and leverage tools to their fullest extent.
MyMedicalRewards™ incentives deposited reward dollars into HSAs, HRAs, or eGift cards for smart healthcare consumerism.
Healthlock's patented rewards system drives engagement and consumerism throughout the plan year, extending beyond the consumer's deductible and out-of-pocket maximum.
Employees earn rewards for choosing high-value providers using customizable price percentile benchmarking. Activity Rewards included enrolling, connecting health plans, and downloading the mobile app.
Activity rewards drive platform adoption and usage, creating a catalyst for increased engagement with the healthcare transparency tools.
Following Healthlock's engagement best practices, the group saw dramatic increases in employee participation throughout the year.
31% Engagement
Initial rollout with Activity and Shopping Rewards
52% Engagement
Ongoing engagement and communication with employees
71% Engagement
Retrospective Shopping feature reviewed EOBs line-by-line, identifying missed savings opportunities
Over first year
Top Shopping Success Story: Cataract Surgery with IOL saved one employee $11,659, earning them a $3,518 reward.
Contact Sales: sales@Healthlock.com | Healthlock.com
The Transparency in Coverage Rule and No Surprises Act opened the door to price transparency, but Precare turns compliance into strategy. By leveraging HealthLock’s Precare platform, employers reduce healthcare costs while giving employees the insights they need to choose high-quality, cost-effective care.