Now, I’ll tell you that we feel like we again have made a conservative IVNR adjustment as a result of that event, ending the quarter with what is our largest IVNR level over the course of our history. And even on a per participant basis, being a larger number. So at the end of the day, we feel like we have appropriately handled the issue with the breach at Change Healthcare. And again, the upside is really coming from the reserves that we in hindsight were conservative that were set up at the end of 2023.
Jeff Martin: Hey, Doug, I’ll follow up with that. Yep. Thank you. So in terms of the benefit cost trend for 2024, is that unchanged versus your last commentary in Q4?
Douglas Sharp: For the most part, yes. I mean, I think we talked going into one and to the year in my last prepared remarks, a benefit cost trend of 4.5% to 6%. And so, it’s still sort of near the midpoint. Still within the range, but probably a little bit down based upon our Q1 experience, but still within that range.
Jeff Martin: Great. And then with respect to the Workday relationship, is it still the expectation that initially you’d be doing a lot of conversions of existing clients prior to taking on new clients? Would we be able to straddle both? And then secondly, how do clients perceive the value in your view? I know it’s still early of doing the combined solution versus doing Workday independently and going without the services that you provide?
Paul Sarvadi: Sure. So we are doing a tremendous amount of research and even working with some outside consultants to evaluate different aspects of this approach, and again, treating this as a new product launch, so appropriately gathering information from both prospects and current clients. And again, looking at value perceived pricing relationships. And so, I think we’re on a very good track to gather the appropriate information, assess it properly, and determine these launch dynamics. At this stage, I think there’s going to be a nice mix between both current clients or even new clients coming on this year that want to upgrade once that is ready to go. Current clients that are already here, like I said, had great conversations and yes, several on that list already.
Some more than happy to be our even beta test type customers. We have a number of clients that are going to be involved in literally the configuration design effort to make sure that we’ve got how much is pre-configured for the whole base versus how much is customizable for clients. So we’re doing those things properly, but yes, there’ll be a mix. And I think there’ll also be a backlog of customers that are signed up to come on the service on the new offering. So our launch time for the offering timed with when it’s actually coming out and having more of a pipeline for these accounts to come on. That’s kind of the mindset that we are in today. There’s a lot of work to get to that point and make sure that’s effective, but we’re on that track.
Jeff Martin: Great. And then one more, if I could, the $60 million of planned incremental spend in 2024, how might that progress as we move through the quarters? And then, how much support staff are you anticipating hiring in advance of that?
Douglas Sharp: So, you know, there’s a process going on there now also and we basically were on track in that or very early first quarter, which is when we had not very much information to try to estimate this. And it came out very good. We’re still very comfortable with that number for the year. And you do have to weigh in also the hiring people versus contracting out for certain components, depending on whether it’s just a surge of need for a short time or whether it’s part of the ongoing picture. So there’s a lot of that type of thing going on as well. But I think the mindset between launching a new product effectively in a timely fashion and managing the investment side and the ongoing expense side has really been impressive to me already in a short time. So, we feel good about how we have looked at this and been conservative in those kind of estimates, but there’s a lot yet to go on. So we’re not getting into that much detail about that yet.
Operator: Okay, thank you very much. [Operator Instructions]. And we have a final question in from Andre Childress, who is on for Mark Marcon of Baird & Company. Andre, your line is live.
Andre Childress: Hi, Paul and Doug. Thanks for taking our questions. My first question is just, as you look back at the key selling and enrollment period, what did you see from a competitive perspective, particularly on the pricing side?
Paul Sarvadi: Yes, we saw through this period, kind of like I mentioned on the last quarter, where when the climate is more difficult, you see more competitive approaches. And so I think a lot of that was more in the fall of last year, kind of peaked. It’s still out there, but I think the way we have looked at it and responded has been effective. This first quarter, having a strong quarter like we did significantly, double digit up from last year was evidence of that. And I mentioned that was a combination of the experience factor and the growth in the number of BPAs, but then also the right incentives for both clients and the sales team. So we’re in a good shape on that front, but I would expect it to stay pretty competitive out there.
As you talked about the Workday comparison, that’s a different animal, because it’s an exclusive relationship. No one will be able to even have that. And I think that frames are offering really well against others. So that’s more of the long-term view on that front. But for this year, we’re expecting it to remain competitive and we like our winning the right clients that we’re after. We’re in great shape on that front.
Andre Childress: Great. And then as a follow-up, in your prepared remarks, you talked about various initiatives to drive BPA productivity. Could you provide an update on just how you are leveraging AI or how you plan to leverage AI across both the sales service and maybe even the R&D organization? Thank you.
