Public Sector

Benefits Modeling

Reden & Anders Benefits Modeling is a powerful analytical tool and a model; allowing employers to confidently predict plan cost differences, establish desirable plan changes, and identify the affect on employees.

Benefits Modeling helps companies understand the implications of changes to benefit plan design and the factors that influence plan design effectiveness.

Powerful tool

Benefits Modeling delivers a powerful way to understand plan provisions and provides business leaders with valuable insight to make informed decisions and meet changing requirements.

Value

  • Evaluate the effect of plan design changes
  • Validate a proposed plan design change
  • Access quantified predictions for more informed decision-making
  • Present concrete support for management decisions

The methodology

Benefits Modeling uses actual data to simulate the repayment of claims under the proposed benefit design changes, compared to the prior year’s plan. The projected savings are allocated across various benefit service categories by showing the reimbursement amount and the allowed per member per month.

Modeling flexibility

The model allows for a variety of plan design variables such as deductibles, coinsurance, co-payments, and benefit maximums (specific dollar amounts or limit on number of visits). Moreover, Benefits Modeling allows employers to model the cost impact of introducing a managed care program, including different benefit levels for utilization in-network, out-of-network and in areas where a network is not available.