Seattle Children’s Saves $3.5 Million
Who Is Seattle Children’s Hospital?
Seattle Children’s is one of the leading children’s hospitals in the United States. In 2015 they were ranked the top children’s hospital on the West Coast. Its dedicated staff of over 6,000 provide exceptional care to patients and conduct groundbreaking pediatric research.
Seattle Children’s contracted directly with Vera to build a clinic near their main campus in 2012. Children’s paid the start-up costs and monthly fee for each eligible employee — on top of their existing monthly benefits package.
What Challenges Did They Face Before Vera?
- Rising Claims: Unmanaged, uncontrolled claims were crippling Seattle Children’s. Their claims trend increase of 7-10% cost them about $3-4 million per year.
- Unsuccessful Employee Wellness Programs: Wellness programs fizzled out and were impossible to measure.
- Looming Tax Penalties: The hospital made a decision to grandfather their existing healthcare plans to avoid complying with the host of free benefits mandated by the Affordable Care Act. Doing so saved them money in the short term, but they faced a Cadillac tax of nearly $4 million in 2018.
Where Did Vera Have The Biggest Impact?
- Claims Reversal: Within 12 months claims were shrinking, not increasing.
- 80% Drop In Hospital Days: Employees who engaged with Vera for primary care saw drastic reductions of the number of days they spent in the hospital.
- $3.5 Million Net Savings: In the first 24 months working with Vera, Children’s saved $3.5 million net. And they’ll avoid the Cadillac Tax in 2018.