Full Definition
Benefits benchmarking is the process of comparing an employer's health plan costs, design, and strategy against peer employers — typically matched by industry, geography, company size, and funding type. Benchmarking answers the questions: Are we overpaying? Is our plan design competitive for recruiting and retention? Where are the biggest gaps relative to high-performing plans? Effective benchmarking requires both cost data (PEPM, employer/employee split) and design data (deductibles, OOPMs, copays, pharmacy tiers).