Case Study

Data-Driven Renewal

HOW WEALTHFRONT REALIZED SIX-FIGURE SAVINGS

When Wealthfront grew to more than 100 employees, its PEO became cost prohibitive. Even with a low health-needs group, Wealthfront struggled to quantify the savings and advantages of offering a high-deductible health plan paired with a Health Savings Account (HSA).

Wealthfront had two goals: 1) not to increase overhead, and 2) improve their benefits offering.

SOLUTION

Lumity’s team analyzed Wealthfront’s current plan design with anonymized employee census information and modeled expected health costs. By modeling current versus expected benefits expenses, the Lumity team also worked with the CFO to forecast cost savings, part of which was offered back to employees as HSA contributions to incentivize uptake of the high deductible health plan.

During open enrollment, Lumity’s health plan recommendation engine paired the highest value plan to each individual’s needs, allowing them to see their current costs, what they’d be expected to pay under each plan, and what coverage they would receive.

Additionally, Lumity worked with the CFO to: 1) choose and set up payroll, and 2) enact ancillary and voluntary benefits.

RESULT

Wealthfront achieved an annual savings of nearly $120k while improving the quality of their plans, and their CFO gained real-time insights into benefits expenses to facilitate budgeting and FP&A.

The introduction of partially-funded HSAs increased employee uptake by 50%, and Lumity saved the company an additional $100k on workers’ comp plans by assessing needs and evaluating the highest-value vendor.

As Wealthfront’s dedicated benefits consultant and broker, Lumity’s service and software benefits solution were available at no additional cost to the company.

As a very small team for both HR and Finance, the personalized data-driven recommendations for each employee took a huge burden off us. Our dedicated account team at Lumity handled our entire transition making the shift easy. Finally, their real-time expense reporting is continuing to help us more accurately budget and forecast this major expense line throughout the year.

Wealthfront-Hero

Ashley Johnson

Chief Financial Officer

Wealthfront Inc. is an automated investment service firm based in Redwood City, California.

If you’re interested in how Lumity can help your company optimize benefits, schedule a free consultation with Lumity’s benefits expert now.