Introducing Contribution Modeling

Earlier this year, we launched percentage-based contribution benchmarking. Now you could see not just where your contributions stood in dollars, but as a share of premium—the metric that actually reflects competitiveness.

That answered the "where do we stand?" question. But the next question was always: "what should we do about it?"

This month we're launching Contribution Modeling.

From Insight to Action

Here's a typical scenario. You run a benchmarking analysis and discover that your client's employee contributions are above the 75th percentile for their peer group—employees are paying more than at three-quarters of comparable employers. Or maybe the opposite: employer contributions are well above market, and there's room to optimize without losing competitive positioning.

Either way, you've identified something. Now what?

Previously, the answer was a spreadsheet. Export the data, build a model, test scenarios manually, hope you didn't break a formula somewhere.

Contribution Modeling brings that workflow into the platform.

How It Works

Start from benchmarking or start fresh. If you've already run a benchmarking analysis, you can pull that data directly into the modeling tool—your current contribution structure, your peer group benchmarks, your competitive positioning. Or you can start from scratch and input contribution data manually. The tool works either way.

Model the strategies that matter. Test the approaches employers actually consider:

• Core/buyup structures where the employer covers more of a base plan and less of richer options
• Flat employee percentage across all tiers
• Tiered strategies that vary contribution by coverage level
• HDHP incentives that offer richer employer contributions for high-deductible plans
• Granular adjustments—move a single tier up or down and see the impact

See both sides of the ledger. Every scenario shows two numbers that matter:

• Top-line cost: Total employer spend across all enrolled employees
• Bottom-line impact: How the change affects employee take-home pay by tier

These are the numbers CFOs and CHROs need to make decisions. Not percentiles. Not benchmarks. Dollars in and dollars out.

Built for the Executive Conversation

Consultants don't just need to analyze contribution strategies—they need to present them. Contribution Modeling generates outputs designed for executive audiences:

• Summary views that show current state vs. proposed scenarios
• Cost impact breakdowns by tier and plan type
• Competitive positioning context (when benchmark data is included)
• Clear trade-off framing: "This option costs X more but moves you from the 40th to the 60th percentile on family coverage"

Export to PDF or CSV formats. Walk into the CFO meeting with something polished, not a screenshot of a spreadsheet.

The Scenarios Clients Actually Face

Renewal cost absorption. Premiums are going up 8%. Does the employer absorb it all? Split it with employees? Use it as an opportunity to restructure contributions entirely? Model each path and show the math.

Competitive repositioning. A client is losing talent and suspects benefits are part of the problem. Model what it would cost to move from the 30th percentile to the 50th—or the 75th. Make the investment case concrete.

Cost optimization. An employer is over-contributing relative to market. Model a gradual step-down that brings them to market norms without shocking employees. Show the savings.

Plan consolidation. Moving from three plans to two? Model how to restructure contributions across the new plan lineup while maintaining competitive positioning.

Available Now

Contribution Modeling is live for all Bnchmrk platform subscribers. You'll find it under the "Modeling" tab in your dashboard.

If you've been waiting for a better way to turn benchmarking insights into actionable recommendations, this is it.

— The Bnchmrk Team