Smarter Health Analysis: Employers Saved Over 20% PMPM by Guiding Employees to High-Value Care

MADISON, WI. (April 10, 2023) – The Alliance helps self-funded employers manage their healthcare spend while improving their benefit plans for their employees. Using insights from deep data mining and analysis, the cooperative supports employers in optimizing their health plans.  

In addition to the savings all employer-members enjoy from The Alliance’s innovative provider contracts, employer-members who use the insights and recommendations from The Alliance’s Smarter HealthSM Analysis realize additional savings. Excluding the top 5% of high-cost claims, in 2022, employer-members who used their data to guide employees to high-value care saved more than 20% per member per month (PMPM) compared to employers that did not. 

Data-Driven Insights   

The Alliance’s Smarter Health Analysis empowers employers by providing healthcare analytics that enable data-driven insights. Those insights drive serious savings because they offer employers guidance on steerage and incentive programs to guide their employees to seek care where the quality is good, and the price is low. While employees are free to seek care wherever they are most comfortable in The Alliance’s broad networks, steering encourages employees to be better healthcare consumers.  

Smarter Health Analysis is a customized healthcare analytics report that provides each of The Alliance’s employer-members with the foundation to design an effective benefit plan. The Alliance consults with its employer-members to help them understand their data so they can see where their healthcare dollars are being spent and find opportunities to save without compromising the quality of care.  

Smarter Health Analysis Report Includes: 

Note employers must be an employer-member of The Alliance with over 50 enrolled employees and have a year and a half of claims data to receive a personalized analysis. 

Cost Saving Examples:

  • By guiding their employees to seek care from high-value providers, one employer-member of The Alliance that purchased nearly $34.5 million in healthcare realized a 44% in-network savings rate
  • Another employer-member bought $22 million in healthcare and saved nearly $8.5 million on in-network charges.
  • Smaller employers also achieved a 38% savings rate with The Alliance. An employer-member that bought nearly $6 million in healthcare saved $2 million on in-network charges.

When employers encourage their employees to seek care where the quality is good and the price is low, it improves the value of healthcare for patients and saves employees and their self-funded employers money. Employers can then reinvest these savings in their employees in the form of robust benefits and higher wages. This gives employers an edge in attracting and retaining top talent and improves workforce productivity.   

Contact our Business Development team to learn how Smarter Health Analysis can reduce the healthcare spend for your business and your employees.  

About The Alliance 

The Alliance serves as the voice for self-funded employers who want more control over their healthcare costs. Using Smarter NetworksSM and sophisticated data mining and analysis, they provide transparent, creative approaches to network and benefit plan design to unlock savings where others can’t – or won’t. The Alliance remains a trusted, objective partner for its 340+ employers and their brokers who seek improved access to high-quality healthcare by contracting with a network of 38,000 healthcare providers and doctors across the Midwest.

Craig Sauer
Marketing & Communications Specialist
Phone: 608.210.6638