Case Study

Data-driven PEO Migration

THE LINUX FOUNDATION SAVES OVER $450k ON HEALTHCARE COSTS

The Linux Foundation, a growing non-profit with 80 employees, was spending more than $1.2M a year on employee health care. The foundation needed to migrate off its PEO to:

  1. Optimize its health plans,
  2. Mitigate rising health care costs while maintaining competitive benefits, and
  3. Establish control over payroll and HR administration.

SOLUTION

Lumity used its proprietary risk model to analyze the foundation’s health data and unearthed a significant discrepancy between projected health care expenses and the rates the foundation was paying their carrier.

In the previous two years, the overall group health profile had dramatically improved. As a result, Lumity was able to negotiate lower premiums and a wider network plan, and cost savings were reduced without sacrificing coverage. Additionally, employees gained Lumity’s data-driven enrollment software to guide their health plan decisions and enroll in health savings
accounts (HSAs) using a single login.

INITIAL RESULT

The Linux Foundation saved $450,000 on its health plans, which allowed it to allocate more resources to hiring. An additional $100,00 saved in PEO licensing fees was funneled into employee HSA contributions. This drove HSA adoption from 6% to over 80%.

YEAR TWO UPDATE

The foundation forecast projected a further rate reduction for the following renewal, netting a further 10% cost savings with no compromise on coverage or plan design.

Lumity made it easy for us to migrate off Trinet, saved us 37% in apples-to-apples coverage, and made our employees better off in the process. We can allocate more resources to hiring with the $450,000 we saved. It’s time a company like Lumity stepped in to help employers and employees use data to inform these decisions.

Jim Zemlin, Executive Director of The Linux Foundation

Jim Zemlin

Executive Director

The Linux Foundation is a non-profit dedicated to building sustainable ecosystems around open source projects to accelerate technology development and commercial adoption.

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