ALEX is a uniquely helpful decision support tool because 1) it factors in the specific health care needs of every employee and 2) it provides side-by-side plan comparisons so clear your brainy 8-year-old niece could understand them.
It’s likely no surprise to you that when employees get easy-to-understand, personalized guidance, they’re more likely to make smarter, pocketbook-friendlier choices. But just how pocketbook-friendly are we talking here? Now that we have our hands on ALEX user data from last year, we’re thrilled to report that in 2018, ALEX helped employees potentially save a whopping $307 million* by choosing our recommended plan over the second-best option.
Not surprisingly, affordable HDHPs were responsible for the lion’s share of these savings. More specifically, ALEX highlighted an HDHP as the best-fit plan for employees 78% of the time.
Also worth noting: When HDHPs came out on top, 52% of the time the plan that came in second was a different HDHP (proving that ALEX is still useful to companies that went full-replacement). Additionally, when employees chose an HDHP and the second-best option was a PPO, the average savings was $946.40. That’s 47% higher than the average plan savings employees saw in general.
In short, this new data clearly shows the positive financial impact ALEX is having on hundreds of thousands of employees and their families all over the country. Oh, and plan savings are only the half of it (actually, less than the half of it): last year, ALEX helped employees and their employers save more than $391 million on personal and payroll taxes, too.
*To get this number, our data team applied what they knew about how often ALEX users select the plan that ALEX highlights (@75% of the time) and the average savings employees in our sample saw by taking that plan instead of the next-best “best-fit” option (@$642) to the number of employees who chose any plan last year (@638,000). Math: it’s pretty sweet.