Case Study: Adobe achieves a $4.7M reduction in ACA tax liability with ALEX

Using ALEX to Reduce ACA Tax Liability

Adobe Systems, a technology company with about 4,400 US-based employees, faced a growing ACA tax liability because of the way its PPO plans were structured—projected at $5 million in 2018 and roughly $50 million over four years. Traditional plan design changes hadn’t persuaded employees to move to consumer-directed plans, so the company needed a different approach to drive migration to an HSA.

Adobe deployed ALEX, a decision-support tool that clarified benefits and showed employees the value of the new HSA option; 62% of the workforce enrolled in the HSA and 98% of surveyed employees found the tool helpful. The shift cut Adobe’s ACA tax liability by $4.7 million, dropping the 2018 liability from $5 million to $300,000.

Adobe

Rosemary Arriada-Keiper

Senior Director, Global Rewards