City of Nashua
Human Resources Department
229 Main Street - Nashua, NH 03060 (603) 589-3230
Fax (603) 589-3244
To: Finance Committee
From: Larry Budreau, Human Resources Director
Subject: SmartShopper Contract Approval
Date: June 27, 2019
The City introduced “SmartShopper” to employees, retirees, and dependents of the City and
School District who are enrolled in health insurance (members) during its April/May 2019 Open
Enrollment period. Please see page 2 (attached) of the Open Enrollment brochure.
The program incentivizes covered members to “shop” on the SmartShopper website or with a
representative on the telephone. When a member selects a lower-cost high-quality service
provider for one of 50 common procedures, he or she receives a monetary reward ranging from
$25 for blood testing to $500 for knee surgery. The cost savings reduces the City’s health
insurance claims cost. Digital Sapphire retains 30% of the savings. SmartShopper determines cost
savings by mining Anthem’s claim data for like services. The cost range for identical services at
different providers can be astounding — sometimes thousands of dollars.
SmartShopper, operated for-profit by Sapphire Digital of Lyndhurst, NJ, has been in operation for
several years in the City of Manchester (2009) and the State of New Hampshire. Both speak highly
of the program. Plan results posted on Manchester’s website reflect a 350% return on
investment. Results are expected to grow slowly as health care “consumerism” requires a cultural
shift.
Adopting the program is supported by the Schooi and City Human Resources staffs; Workplace
Benefits Solutions, the City’s health insurance consultant; Kim Kleiner, Administrative Services
Director, and Mayor Donchess. Anthem includes SmartShopper in its fully insured contracts, and
is paying the fixed fee on the City’s behalf for the 3-year contract period.
In summary, though Sapphire Digital is paid for its service, the program will provide a net savings
to the City.
Thank you,
Larry
Larry Budreau
