Asparity Reports that 85,000 Federal Employees Made More Affordable Health Plan Choices during 2011 Federal Open Season

PlanSmartChoice Results and Award RecipientsAnnounced

DURHAM, N.C.--(BUSINESS WIRE)-- Asparity Decision Solutions, a leading provider of health care and employee benefits decision support and data solutions, reports that 85,000 federal employees used PlanSmartChoice during the 2011 federal open season to make more affordable health plan choices. PlanSmartChoice is a free Web site that federal employees, who participate in the Federal Employees Health Benefits Program, use to evaluate their health plan options and select their health insurance coverage.

During this year’s federal open season, many federal employees were confronted with significant premium increases. They also learned that their wages might be frozen during the year. Given these financial concerns and the need to budget their health care costs, federal employees who used the PlanSmartChoice health plan selection tools:

• Projected spending an average of $4,360 in total health care costs in 2011. These costs are 10 percent more than in 2010, and employees could spend even more depending on their income level and plan choice. PlanSmartChoice users, who had an average income of $81,815, could expect to spend an average of five percent of their annual income on health care.
• Identified “annual contribution” and “annual deductible” as the most important factors when choosing a medical plan, along with “overall plan satisfaction.” Other key issues (determined by employees use of PlanSmartChoice) included “access to out-of-network providers,” the “ability to self refer,” and “coverage for brand-name drugs, dental care, and office visits.”
• Switched health plans to control their costs. Thirty-eight percent of PlanSmartChoice users switched plans from more expensive plans, such as Health Maintenance Organizations, into more affordable plans, such as Consumer Directed Health Plans, High Deductible Health Plans, and Preferred Provider Organizations. Also, enrollment in Fee-for-Service plans increased slightly.
• Further reduced their costs by enrolling in FSAFEDS. Overall, only about 15 percent of federal employees enrolled in the Flexible Spending Account compared to 38 percent of PlanSmartChoice users. By participating in the FSA, these employees will save an average $612 and reduce their total health care costs by 14 percent. They also generate real savings for the federal government by reducing FICA expenses by an average of $114 per user.

"Federal, state, and local governments responsible for developing health insurance exchanges can look to PlanSmartChoice as the best example of individual consumers making informed choices," said Colleen Murphy, Asparity's President and CEO. "Federal employees and individual consumers trust our health plan selection tools to evaluate their options so that they can choose the plan that’s best for their specific needs."

Federal employees were affected by the Affordable Care Act, which had several changes become effective on January 1, 2011. Asparity found that:

• Two-thirds of survey respondents were affected by preventive care being covered at 100 percent by all medical plans.
• Nearly 40 percent of respondents were affected by over-the-counter medications no longer being eligible in FSAs.
• Seventeen percent of respondents were affected by the ability to cover their children through the age of 25.

Nearly 10,000 PlanSmartChoice users took advantage of Quick Results, a new PlanSmartChoice technology that generates users’ results for the upcoming year using their prior year inputs. This innovative feature made it easier and faster for federal employees who used PlanSmartChoice in the last 12 months to select health plans. Employee who used the tools for the first time this year can use Quick Results during next year’s open season. The technology is patent pending.

Asparity is pleased to announce its PlanSmartChoice Plus award recipients for the 2011 Open Season. This award recognizes the top-rated plans in the FEHB program based on their PlanSmartChoice results in the medical cost calculator and preference module, as well as users’ self-reported satisfaction ratings. These plans represent a mix of national and regional plans, as well as product types. The recipients are:

• APWU Health Plan’s national CDHP and FFS (high option) plan
• Compass Rose Health Plan’s national FFS (high option) plan
• Dean Health Plan’s HMO (high option) in Wisconsin
• Foreign Service Benefit Plan’s FFS (high option) plan
• HMSA’s POS (high option) plan in Hawaii
• Independent Health’s HDHP and HMO (high option) in New York
• Kaiser Foundation Health Plans of California, Georgia, and MidAtlantic (high option)
• Triple-S Salud’s POS (high option) plan in Puerto Rico

Asparity makes PlanSmartChoice available free at www.PlanSmartChoice.com to all federal employees. They chose from an average of 19 medical plans, as well as an array of dental and vision options and a flexible spending account (or health savings account). On average, federal employees spent 14 minutes using the PlanSmartChoice health plan selection tools to:

• Learn which medical plans best meet their personal and financial needs
• Understand the total cost of their health care based on their own need for medical services
• Determine how much to contribute to FSAFEDS to control their health care costs
• Compare detailed information across the medical, dental, and vision plan options.

The information contained in this press release and the PlanSmartChoice 2011 open season results may not be used for advertising or other promotional purposes without Asparity Decision Solutions' prior written approval.

About PlanSmartChoice

PlanSmartChoice (www.PlanSmartChoice.com) is available free to federal employees and non-Medicare eligible retirees who enroll in benefits through the Federal Employees Health Benefits Program (FEHBP), Federal Employees Dental and Vision Insurance Program (FEDVIP), and FSAFEDS. Hundreds of thousands of federal employees have used Asparity’s PlanSmartChoice health plan selection tools since they were first made available in 1998. The tools were developed in 1996 and 1997, when the Agency for Health Care Policy & Research/ Small Business Innovation Research granted more than $1 million to develop software that would help federal employees and retirees choose a health plan. The technology, trademarked PlanSmartChoice, was patented in 2004.

About Asparity Decision Solutions

Asparity provides decision support and data solutions for the management of health care and employee benefits. The company owns patented technology in conjoint analysis and advanced software applications that it delivers directly to corporate clients, through strategic partners, and in a publicly-available Web portal (www.PlanSmartChoice.com) for government entities and insurance exchanges. The company is headquartered in Durham, North Carolina. To find out more, please visit www.asparity.com or contact Brigid Gallagher at (919) 688-1430 x1025.

Asparity Decision SolutionsBrigid GallagherMarketing Consultant
(919) 688-1430 x1025
[email protected]

Source: Asparity Decision Solutions