Case Study

Using ALEX to Help With CDHP Plan Migration

Background

ICF International (ICF) was in a pickle. Its medical plan offerings were on track to trigger the ACA’s excise tax in 2018, and while they knew they had to make a move toward consumer-directed health plans, they didn’t want to force employees into CDHPs if they weren’t ready to make the change.

If they were to reduce their tax liability along with overall cost of medical benefits without inciting an employee riot, they were going to have to do it gracefully.

“We knew it wasn’t going to be easy to convince people to go away from a copay plan. This kind of move can be an uphill climb, and the only way to ensure adoption is to ensure understanding. We partnered with ALEX so we could provide employees with personalized decision support to make their choices easier.”

Kristen Butler
Vice President of Global Total Rewards and Technology, ICF International

How ALEX Helped

ICFI decided to offer two new CDHPs alongside their current offerings so employees wouldn’t have to make a move unless they were comfortable. Because of the way they structured their plans, they were forecasting a 20% rate of enrollment.

Thanks to ALEX’s ability to walk employees through important decisions in an interactive and personalized way, CDHP enrollment rates soared. Instead of the 20% they had been hoping for, ICF achieved a 50% rate of enrollment, driving enormous cost savings.

“If we achieved our goal of 20% enrollment, our benefits costs would have increased by 8.6% over those for 2013. But what happened is, we got 50% enrollment, so we ended up with only a 3.7% increase in cost. Thanks to ALEX, we saved so much more than we were projected to save.”

Kristen Butler
Vice President of Global Total Rewards and Technology, ICF International

“Very helpful walk-through of plan features. In particular, explaining the out-of-pocket prescription costs (which initially worried me under CDHP II) and that the HSA money can accumulate year after year.”

Employee, ICF International

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