Liberty Mutual Insurance wanted to modernize its employee benefit offerings to allow for more choice, greater transparency and cost-saving opportunities.
The company reduced its number of carriers, began offering a consumer-directed health plan (CDHP) in addition to a preferred provider organization (PPO) and introduced the Benefits Mentor solution to help employees find their best-fit plans.
38% of employeeselected the new plan in the first year
58% of eligible employeeswere members of the CDHP by the second year
Two-thirds of eligible employeescompleted all steps in the Benefits Mentor solution
Business challenge story
Matthew Vlieger, Manager of Finance and Analytics in the Corporate Benefits Division at Liberty Mutual, is responsible for analyzing member engagement within the various health plan offerings. He also provides insights to the strategy directors to help them identify areas for improvement.
In 2015, as the company began to recognize the value of and trend toward CDHPs, it was clear that significant changes were in order.
Vlieger knew that Liberty Mutual needed to modernize its benefits and provide employees with a choice. So, the company began offering two health plans — a PPO and a CDHP.
“Through a consumer-directed health plan,” Vlieger explains, “employees will have to make decisions to not only spend their money in the most appropriate and beneficial way, but also learn where they can find significant savings. Then they can use that money in other ways.”
The company reduced its number of contracted carriers from two to one and replaced its pharmacy benefit manager. This helped cut costs for both employees and the business and gave employees more choice when it came to filling prescriptions.
A better understanding
To help employees decide which of the two health plans was the best fit for their needs, Liberty Mutual implemented the Benefits Mentor solution from IBM Watson Health™.
This web-based tool is designed to guide consumers through their benefit plan options, maximize their tax advantages and avoid over- or under-insuring. With the ability to view their claims information from the previous 6 – 9 months, employees could make more informed decisions about which plan was best for them.
Seeing the light
According to Vlieger, the Benefits Mentor solution allowed Liberty Mutual employees to see, maybe for the first time, what the true cost of their healthcare has been. They’re also able to identify opportunities to save money, helping them make informed decisions about how to manage their healthcare.
While the company originally considered the Benefits Mentor platform a temporary solution as Liberty Mutual transitioned its offerings, Vlieger said the team was so impressed with the results, and the ability of the solution to integrate flexible savings accounts, that the tool is now seen as a pillar of the annual enrollment process and will be used for years to come.
Liberty Mutual Insurance
Liberty Mutual offers personal and commercial insurance to policyholders around the world. With more than 50,000 employees located in more than 60 countries, managing the corporate benefits program is a tremendous task.
About Watson Health
For more than a century, IBM has been creating innovations that matter. And with Watson Health, we are committed to help build smarter health ecosystems. This means working with you to help you achieve simpler processes, better care insights, faster breakthroughs, and improved experiences for people around the world. Our core strengths combined — deep industry expertise in health, data and analytics, actionable insights, and our reputation for trust and security – can enable us to deliver support for our clients. Together with our clients and partners, IBM is putting smart to work. For more information, visit https://www.ibm.com/watson-health
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