Often times, it is not the initial cost of a company’s healthcare program but the ongoing premiums over time that sink many firms into a morass of expenses they did not anticipate.

Smart companies are looking down the road along a five year horizon to truly anticipate healthcare costs.

With the changes in charges associated with HSAs, it has become increasingly important that firms changing to these plans from other offerings, or installing healthcare programs for the first time, have a clear picture of where they will be by the end of the decade.

Cordova Advisors has introduced HSA Dashboard™, a first-of-its-kind software application that provides a realistic picture of the value that can be created over time through the use of Health Savings Accounts (HSAs).

HSA Dashboard™ provides a detailed visual environment in which an employer and their insurance advisor can compare the financial effects of up to three different health insurance programs. 

HSA Dashboard™ provides the end user with a clear picture of:

1) How an HSA-based plan compares to current or alternative health insurance programs and, therefore, why it makes sense to consider an HSA program.

2) How to adjust HSA and insurance premium contributions to design an optimal HSA plan.

Employer costs for each of the health insurance programs are projected over a five year time horizon. Additionally, the end user is presented with results that are based on an innovative approach that shows the present value of cumulative future health care cash flows for both employer and employees over the same five year time horizon.  The goal is to view the relative financial merit of a health plan through a combined employer-employee perspective that accounts for the full value that HSA-based plans can create over time. 

HSA Dashboard™ is driven by a carefully constructed quantitative model that incorporates variables for key factors such as: health care inflation, investment returns, general rates of inflation (CPI), discount rates, staff growth/attrition rates, managed care network discounts and age shifts in the employee base. 

Model variables are continually updated and can be customized based upon a client’s needs and preferences.  In addition, the model uses a statistical sampling method to simulate health care spending in an actuarially credible manner for each employee within an organization.

The result is an analytical tool presented through the lens of a detailed, intuitive and interactive user interface.

The offering is designed to be used by agents, brokers and third-party administrators to better inform corporate managers about the long-term effects of healthcare costs.