Benefits administration is enormously complex. A successful enrollment requires surgical precision and careful coordination of multiple sources of data from multiple systems.
Organizations need to understand hundreds of intricate eligibility and enrollment rules and infinite combinations of rate structures to successfully manage the daily events that are today’s Benefits offerings. Getting it wrong creates exposure to financial and compliance risk, and now, more than ever, employee dissatisfaction.
The Affordable Care Act (ACA) in particular has brought continued focus on the complexities of managing Benefits, leading many businesses to seek outside expertise. In addition, as organizations look for a competitive edge, offering a broader and more varied array of Health, Wellness, Financial and Lifestyle Benefits is emerging as away to attract and retain the best talent. The additional complexity caused by the increased number of Benefit offerings and the associated burden of connecting to multiple carriers and reconciling deductions to payroll has driven the increased interest in Benefits Administration Outsourcing (BAO).
According to the Everest Group’s Anil Vijayan, the BAO market continues to move toward service provider specialization, driven by increased regulatory complexity and changing buyer preferences. Anil says, “With consumerism on the rise, providers are investing to create differentiators around analytics, employee self-service portals, Consumer Driven Health Plans (CDHP), and Health Insurance Exchanges.”
Everest recently analyzed the global BAO landscape and ranked ADP as both a Major Contender and Star Performer (based on year-over-year movement).
ADP Benefits Services is proud to have increased our standing in the PEAK (Performance, Experience, Ability and Knowledge) Matrix assessment this year, and I can point to several product and service enhancements that got us here.
We’re excited to have:
- Delivered a unified, modern user experience across ADP products, including payroll, HR, benefits, talent and recruiting.
- Integrated decision support into the benefits-enrollment user experience, including insights based on data and expertise to assist employees in selecting and enrolling in medical plans that best meet their individual and family needs.
- Launched a Private and Public Exchange offering as a direct extension to our existing technology platform, making it easy for companies to adopt Exchange capabilities without wholesale technology shifts or software migrations.
- Opened our technology architecture and extended our network of partnerships to companies such as GoHealth (Public Exchange operator), USI, Hays (insurance brokers) and Corestream (voluntary benefits technology platform).
- Launched ADP Enterprise Benefits in partnership with Thomsons Online Benefits to support multinational clients with global administration of benefits in countries beyond the United States – a solution already supported in 75 countries and 24 languages.
Everest also highlighted our significant BAO revenue and solid delivery capabilities, and named ADP as one of the strongest “Health & Welfare” providers in North America.
Certainly, we have more work to do on behalf of our clients. But this kind of milestone is a good time to assess our progress even as we continue to move forward in this critical area!
To learn more from the Everest Group Peak Matrix BAO report, click here.