Benefit brokers, third-party administrators (TPAs) and human resource managers provide, administer and manage benefits packages for companies of all sizes. As the workplace evolves and workforce needs change, benefits are becoming more complex. Employers want to offer competitive packages to help attract, retain and reward employees with benefits they access via positive experiences. The administrative systems relied on for these purposes can have a major impact.
Given the important role that the software solution can hold in the user experience equation, what should benefits brokers, TPAs and employers expect from their software providers? Or to put it another way – what do software providers owe to their clients?
Experience
Technology has been growing at an exponential rate, particularly over the last several decades. People tend to get very excited by the next new thing, something that’s on the “cutting edge.” When it’s something fun and entertaining – like a cool new phone or the latest video game with amazing graphics – we tend to get annoyed when we encounter “bugs,” but that’s about it.
However, tax-advantaged benefit accounts are a different matter. In this highly regulated space, finding a technology solutions provider with years of industry experience can be invaluable. A development team that is deeply familiar and experienced with government regulations and trends specific to the benefits administration industry can be more adept in creating software products that best serve administrative needs.
A recent example of a complex industry change is the American Rescue Plan Act (ARPA) of 2021. This legislation had sweeping impact on COBRA benefits, including complex premium subsidy rules. With the large number of workers who lost their jobs or had their hours cut dramatically during the pandemic, COBRA claims soared. It was crucial for brokers and TPAs to partner with a software provider with the experience and expertise to help them stay compliant as they navigated new, complex rules and processes, as well as substantially higher volume.
Less mature and experienced technology providers may extend promotional pricing and similar offers to entice new customers. However, a seasoned software developer brings a wealth of knowledge, skill and support that increases in value over the long haul, and particularly during times of market and regulatory flux.
Flexibility
To achieve their goals, some employers need complex plan designs. Health reimbursement arrangements (HRAs) often come into play in such situations. An estimated 15.5 million HRA accounts are currently in force across the country. Administration of even the more traditional HRA plan designs can get complicated, and in recent years, new HRA plan types have been created. Anyone who sells, administers or manages these complex plans is at a distinct disadvantage if they have to reach out to their software provider each time a new, custom plan configuration comes along.
Good benefits software will have the functionality to meet the many complexities that come with serving employer goals. Solutions providers should be on top of industry trends and have the foresight to modernize their administrative platforms on a consistent basis.
Convenience
Most people acquire technology to enhance their capabilities, accuracy and efficiency. For administrators offering multiple types of tax-advantaged benefit accounts, a single technology solution that can manage everything within a single system is ideal. Those who have to partner with a separate provider for, say, health savings account (HSA) administration, are at risk for operational inefficiencies and, in turn, decreased client satisfaction.
Any leading technology solution must offer convenient supporting features that users have come to expect, including mobile apps and linked debit cards. These also increase operational efficiencies for administrators by decreasing customer service contacts and claims volume.
Customer support
Technical support is integral to any technology solution. The American workforce currently has four distinct generational cohorts of workers with varying degrees of technological comfort. From the brokers, TPAs and HR managers involved in creating, administering and managing the plans, to the employees who use the plans, access to quality customer support through multiple channels is crucial to adoption and usage.
Marketing support
Customer support is more than just technical expertise. More and more, benefits brokers and administrators need access to marketing support materials that can be branded or customized to their organization and clients. Some don’t have an in-house marketing team, and even those that do can find having the assistance of industry-experienced marketing professionals to be a real asset in meeting their own objectives.
Education support
League and the Harvard Business Review found in a 2019 study that 65% of employees do not fully comprehend the value of their company-provided health benefits, 63% don’t know enough about how to leverage their benefits, and 58% weren’t even sure what health benefits they were entitled to. If employees are not using benefits because they don’t understand them, having effective educational materials available is paramount to increasing benefits adoption and usage rates. This, in turn, results in improved return on investment for the employers sponsoring those benefits, and higher client satisfaction for the brokers and TPAs involved.
Thought leadership
Finally, a software provider with the benefit of extensive knowledge and experience should share it with clients, non-clients, and others in the industry to impact the common good. A record of thought leadership also serves as a sign of the provider’s own strength and reliability.
Think about what you want and need from your technology solutions partner. If you are already using benefits administration software, are you being provided the tools and services you need for your business to achieve its goals, serve your customers well, and thrive in this industry? If not, then my hope is that the foregoing insights will help you determine what to look for when selecting a new software partner.
John Robbins, Jr. is the President/CEO of DataPath, Inc., with responsibility for molding the company’s vision and providing the leadership needed to stay at the forefront of the consumer-driven healthcare industry. He has more than 25 years of CDH industry experience.