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Health Insurance Underwriter Magazine June, 2001
Using Technology to Increase Sales
In this day and age, it is not only realistic but also prudent to anticipate that many new technology offers will come to your clients. Whether it's a mailing from a carrier, system provider or another broker, or an advertisement in an industry periodical, your clients will be approached with news about the "latest and greatest" this or that.
In the insurance industry, one of the most dramatic areas for technological advancement is the area of employee benefits and the advent of application service providers (ASP's). Now more than ever before, employee benefits directors are interested in the advantages of computerized programs. If they themselves do not currently subscribe to an online benefits administration system, chances are they know other HR directors who do, and the majority of "unwired" HR directors will probably make a move to become "wired" in the next six to 24 months.
ASP's enable companies to utilize complex systems in easy-to-use programs. The data is housed at another site but is accessible via an Internet connection. It's a little like bringing a mall of services directly to your office doorstep, yet there's no need for the client company to invest in prohibitively expensive equipment or software packages.
As a sales person, it's your job to be familiar with the latest offerings and the differences, similarities and value that they each bring to the client. When your clients choose to implement an online benefits system, they are partnering with a provider of these services that you have selected and recommended. From the onset, your reputation will closely be associated with the quality of the product you recommend. Know the field. Know the differences in each service and/or provider. Anticipate your clients' questions and provide them with all the information they need to make a sound decision. Here are a few very important features you should be prepared to discuss:
Flexibility and Scalability
Your provider should be flexible - able to interface with all kinds of systems and data. Your clients may be importing data from different sources and they will need to ascertain if the system can easily integrate with other systems.
Scalability is having the capacity to easily grow larger or smaller. With so many start-ups and entrepreneurial ventures, the question to ask is not always “What size is your company now?” It's more like “Where will you be in five years?” Your job is to match the right ASP with the right client. The largest provider may not necessarily be the right provider if your client gets lost in the shuffle. Yet a tiny provider may not have the capacity to grow with a company, especially those that have aggressive growth plans.
“Turnkey” From the Onset
Most clients opt for a new benefits tracking program during open enrollment. It's a busy time and any assistance that you can lend to make the process easier is usually well received. In your benefits administration product line, who is responsible for initial setup and data input? Your client? Why not choose a product for them where all they have to do is start the program and their data is already entered. This is a big-time savings - and a huge selling point.
Information Housing and Data Ownership
There are many benefits to having information housed outside your client's company. An established ASP will have a number of firewalls and encryptions to safeguard the information from being accessed by unauthorized company personnel and outside hackers. The information will usually be backed up on a daily basis. Often there is a second server should the main server go down. It also has an added protective layer to keep it from being accessed inside the company. Protecting sensitive information was long ago discovered by payroll administrators; it's a big part of the reason that payroll is often administered outside of the company.
A follow-up question that will arise is: Who owns the data? The short answer: your client. Clients should have full ownership of their data and be able to transport the data to any ASP. If the data resides on a carrier's proprietary server, it is often not transportable without additional charges, should either you or your client decide to switch carriers.
Robustness of the Eligibility Engine
A truly capable enrollment engine will evaluate each enrollment activity and apply any necessary combination of rules, messages, prompts and options that are specifically designed to meet the exact eligibility requirements desired. Effective date calculations, waiting periods, age ranges, volume limits, group number assignment and product availability all must be configurable for each employer group and benefit offered. Furthermore, an employer group should not have to modify its eligibility rules to accommodate a piece of software. If you have a specific need, you have every right to expect your enrollment software to be accommodating.
Current Functionality
With software applications, far too many promises are based on wishful thinking on the part of the developers. It's important to know what your program can deliver now, not six months or a year down the road. Your clients will appreciate your integrity.
Provide your clients with as much information as you can about your product line and its development team. Where did your ASP provider's program originate? Did software programmers develop it? Did it emerge from the insurance industry? Is it associated with the provider? If you change providers, will all of your data have to be re-entered? What is the background and experience level of the development team? Do they have state-of-the-art developers, programs, customer service representatives and relationships with a broad group of providers?
The Importance of Customer Service
Don't underestimate the importance of great customer service. As I mentioned in the introduction, your client is entering into a partnership with your ASP provider. Will your provider give the same courtesy to your clients that you provide? Will your clients be able to talk to a human or will they quickly become prisoners in voice mail jail?
When is the Best Time to Implement a New System?
Most people recommend starting a new online plan during the open enrollment period that usually falls between September and January. It's a busy time for HR personnel. One of the key benefits of online administration is that employees can enroll themselves in most systems. Another benefit is that when employees sign themselves up, they are often able to do so from home and can sit with their spouse and/or significant others to decide together which options of coverage, including doctors, plans, providers, etc., they will choose.
What Type of Tasks Are Usually Accomplished Online?
With accessible records, employees can easily:
·· Add and delete dependents
·· Update demographic information
·· Change plans at open enrollment
·· View plan designs at any time
·· Search provider directories for doctors
·· Compare plans and employee contribution options
·· Print anything related to their records
Assess and Provide an Accurate Timeline for Your Clients
Depending on the size of the company, most ASP's can be implemented in a matter of weeks. Implementation includes setting up employee records that are accessible online via a password-type authentication process. If a client has stringent deadlines or extenuating circumstances, you should disclose that information early in the process to the ASP. Communicate your expectations, along with your client's, and put them in writing so there are no misunderstandings down the road.
What's the price? Are there extra charges? What do these programs cost? How do pricing and delivered services compare? Are there additional charges for set-up, storage or maintaining the system? There are wide pricing variations for the same service, so buyer beware. Some providers charge a licensing fee for use of the program or you may be charged per employee. Ask about the ancillary fees. It's in these areas where there are widespread discrepancies.
Costs versus Benefit
The benefits to having online access are many and growing by the day. Employees are able to maintain their own records. There is convenience, time savings and greater accuracy. It is also a convenient solution in today's rapidly increasing decentralized workplaces, where you may have workers who telecommute, work in the field, or even reside in other states.
In this day and age, many new technology offers will come to your clients. With so many advances in computers and administrative technology, there is no reason for anyone to be shackled to the fax machine or photocopying in triplicate while taming drawers full of files. Your clients will be looking to you for new options. Why shouldn't you be first in line with a solution?
ARTHUR L. BROOKS is Vice President of Sales at Hawthorne Benefit Technologies, headquartered in San Diego, CA. HBT has developed two online B2B programs, BeneTrac and BeneQuote, to support employee benefits quoting, enrollment and benefits management process. Art can be reached toll-free at 877-645-4342, or email him at abrooks@benetrac.com
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© 2009 Paychex Benefit Technologies, Inc. All Rights Reserved.