Leveraging platform data and metrics, Alegeus shares benchmarks and best practices that translate into tangible cost savings for your business. Follow the best practices and calculate the savings.
Best practice #1: Increase auto substantiation rates
On average, Alegeus clients auto-substantiate 81 percent of their CDH payment transactions, and on the the high-end, clients auto-substantiate 95 percent of transactions.
To increase your auto-substantiation rate:
You could save: $0.03 center per participant, per month for every 5 percent increase in auto-substantiation. That’s $1,800 saved for every 5,000 participants each year.
Best practice #2: Integrate interactive voice response (IVR)
An interactive voice response system improves efficiencies over live-person operations and participant satisfaction by providing information at the touch of a button, without incurring hold-times. Two out of three Alegeus clients have IVR access enabled.
To optimize your IVR ROI:
You could save: $0.20 per participant, per month simply by enabling IVR access. That’s $1,000 saved for every 5,000 participants each month.
Best practice #3: Transition manual claims to electronic submissions
On average, Alegeus clients incur a 14 percent manual claim rate, with some reaching as high as 92 percent. To convert repeat manual claim offenders to electronic submissions, you must track and communicate to these participants.
To best position electronic claims:
You could save: $3,600 by reducing manual claims by 15 percent for 5,000 participants, or $0.06 per participant, per month. That’s $3,600 saved for every 5,000 participants each year.
Best practice #4: Reduce claim denials
Once you understand the top reasons for claim denials, you can reduce them and improve the participant experience. Today’s average Alegeus client incurs a 4 percent denial rate.
To reduce your claim denial rate:
You could save: $0.013 per participant, per month with every 15 percent decrease in the denial rate – and you’ll improve consumer satisfaction too. That’s $780 saved for every 5,000 participants per year.
Best practice #5: Increase debit card transactions
When participants use their debit card, you save money and increase efficiency. Nearly three out of four transactions are made with a debit card. However, some Alegeus clients have only debit card transactions while others have none.
To drive debit card utilization:
You could save: $0.03 cents per participant, per month, or $1,800 annually for every 5,000 participants for whom you can increase card utilization by 15 percent.
Best practice #6: Automate account enrollment
When possible, encourage employers to provide enrollment files and leverage online enrollment.
To drive auto-enrollment:
You could save: $0.03 per participant, per month with 100 percent auto-enrollment. That’s $1,800 saved for every 5,000 participants each year.
Best practice #7: Encourage direct deposit
Reimbursements through direct deposit are a win-win. You save man-hours and speed the time it takes to pay participants. Today, Alegeus clients use direct deposit forty-three percent of the time.
To reduce paper check payments:
You could save: $0.70 per payment. For every 5,000 payments you convert to direct deposit, you save $3,500.
Best practice #8: Automate participant communication
Collect email addresses and drive participants to use automate communications – all while saving money and improving engagement.
To drive consumers toward automated communications:
You could save: $0.09 per participant per month. For every 5,000 participants enrolled in automated communications, you save $5,400 per year.
The big picture
Whether you’re able to implement all these best practices or need to start with your top priorities, the savings add up fast! Implement all of the best practices and you could save more than $.50 per participant, per month. At 5,000 participants, that’s more than $30,680 a year!
Don’t forget that Alegeus offers turnkey marketing materials that can be customized for your business and automated direct-to-member communications. Be sure to speak with your account executive to begin your strategy and find out how to maximize your efficiency using free tools from Alegeus.