API connectivity and the bentech ecosystem: A Q&A with Sun Life’s Ted Phillips

By Zach Wallens, Director of Content and Communications, Ideon

The HR and benefits technology (bentech) ecosystem has exploded in recent years, with billions in venture capital investment driving innovation and new players in the space.

That’s left insurance carriers with a strategic and technology challenge: how do we partner and connect with dozens of bentechs, ensuring brokers and members have a great experience across the platforms they use today?

Ted Phillips, Sun Life’s AVP, Distribution Digital Center of Excellence, tackles these challenges every day. Ideon spoke with Ted about Sun Life’s tech partnership strategy, the value of “enhanced” API connectivity, and their new partnership with Ideon.

 The below interview has been condensed and edited for clarity.

 

IDEON: What’s your role at Sun Life?

TED PHILLIPS: I lead a team that’s responsible for the strategy and execution of our benefits technology (bentech) platform partnerships. We’re looking to create new partnerships, bring them to market, and grow premium through these relationships. Through Sun Life Link, we work with our accelerator team on building out API connectivity, and our data operations team, which takes the connectivity we build and operationalizes it.

Our ultimate objective is to make benefits easier to manage — to remove headaches that are often felt in managing ancillary products. We want to streamline benefits administration, billing, and everything in between.

 

How has your partnership strategy evolved recently?

We’ve transformed our partnership strategy for three reasons: First, there’s an expectation now—among members, brokers, and employers—that technology works seamlessly. It’s incumbent upon Sun Life to make sure the benefits experience is great for everyone and that we meet their expectations.

Second, technology has advanced quite dramatically over the past 2-3 years. APIs and enhanced connectivity are the hot topics of today. Most of the bentech ecosystem are working toward some level of enhanced API connectivity.

Third, the bentech ecosystem is far more complex and nuanced than a few years ago. Before, there were benefits administration platforms (BenAdmins), but now there are many more layers and segments within our ecosystem: HCM, proposal tools, quote-to-enroll, broker tech, resellers, and more.

 

What does that complexity mean for your team?

In 2019, the global investment in HR tech was $5B. In 2020, it was $17B. What that creates is a whole host of companies that are extremely valuable, like Ideon, and others that are just getting their idea off the ground. For us, the challenge is making the right decisions on which bentech platforms to partner with.

We’re always evaluating two things: which segments of the ecosystem do we want to work with, and how can we connect with them? Sun Life can’t take in every connection request we receive from bentech platforms. Middleware like Ideon allows us to multiply our team’s impact by increasing the number of platforms we can connect to.

 

Sun Life recently partnered with Ideon to enhance your data exchange capabilities with bentech platforms. How does better connectivity affect your clients?

It’s all about making benefits easier. APIs and enhanced connectivity enable us to streamline eligibility, benefits administration, enrollment, etc., and that saves hundreds of hours for our brokers and clients.

We find that when employer groups are on platforms, especially those with which we have enhanced connections, they have access to more Sun Life products and better benefits education experiences.  Also, with better connectivity, the enrollment and administration process is faster and more accurate, leading to fewer claims and billing issues.

 

Let’s talk more about that. How do APIs improve data accuracy?

Technology, including APIs and enhanced connectivity, allows us to identify errors and correct them before they become significant client issues.

It starts with making sure benefits products are set up correctly on platforms. We then use APIs to ensure enrollment eligibility is completed quickly and accurately, to make sure benefits are available when they’re needed.

As enhanced connectivity becomes commonplace, there will be tremendous value in having more accurate data connections. It’s not just about speed — accuracy is just as important.

 

Does this help Sun Life’s operational team, too?

Absolutely, there’s a big impact on carriers. The Ideon system creates better data accuracy — which may equate to fewer support calls, fewer billing issues, and fewer claim issues. That can have a huge effect on the industry: we’ll all be much better off if we aren’t using paper and email to solve and reconcile these data errors. With better connectivity, they might not be issues at all.

 

We’ve talked a lot about carrier-bentech partnerships. How else is the industry working together?

There’s beginning to be a collaborative mentality in the benefits industry. Data accuracy and data exchange are industry-wide challenges, and neither will be solved by one carrier alone.

LIMRA is a great example of industry participants and even competitors working together to solve these challenges. There’s a mentality amongst a group of individuals that we need to fix this as an industry. If we do, everyone will be better for it.

 

Final question: Besides API connectivity, in what other areas is Sun Life investing in technology?

Sun Life is, first and foremost, an insurance company. But we have developed proprietary technology that provides a modern client experience. Sun Life Onboard, for example, is a digitally enhanced onboarding experience. Our Benefits Explorer tool helps educate members on benefits pre-enrollment and throughout the client lifecycle.

But it’s a balance. We also need to be where our clients are. As we’ve talked about, Sun Life has invested significantly in API-powered partnerships with bentechs in the market. Ideon is a big part of that.

We don’t think of these as separate buckets — in-house vs. external investment. We look at it holistically and invest accordingly. Ultimately, we want to make benefits easier to enroll, manage, and administer, on platforms and throughout the benefits ecosystem. We do it by developing technology and through partnerships with companies like Ideon.

 

Interested in learning more about Ideon? Check out our API middleware solution, connect with our sales team, or subscribe to our newsletter.

How the group benefits industry can solve bad data challenges

To eliminate inaccurate benefits data, the industry must adopt a new mindset, embrace modern technology, and increase collaboration. In this digital insurance article, Ideon CEO Michael Levin lays out the path forward.

Shop-by-doc is now ‘must-have’ for leading InsurTech platforms

HMO or PPO? Copay vs. coinsurance? What’s the cost-sharing structure for out-of-network specialist visits, mental health services, and home health care? Shopping for a health insurance plan is a notoriously painful process — whether you’re seeking individual coverage, choosing between plans offered by your employer, or examining your Medicare Advantage options, it’s often difficult to identify the plan that best matches your specific requirements. And it’s certainly not getting any easier: more carriers are offering more plans than ever before.

Like modern shopping experiences in other industries, the bulk of health plan selection now occurs online, via digital health insurance exchanges of both the public and private variety. For these digital platforms, used by consumers, seniors, brokers, and businesses alike, it’s critical to deliver intuitive, data-driven user experiences that provide full transparency into the rates, cost-sharing, subsidy estimates, and other features of all available health plans. However, a robust plan library, side-by-side plan comparison, and a modern quoting interface are insufficient to meet the needs of today’s users.

Shop-By-Doctor: provider-centric plan selection

To many consumers, there is no more significant determinant than whether a plan offers in-network coverage of their preferred providers, hospitals, and facilities. This has become even more important in recent years, as out-of-pocket maximums have increased and high-deductible plans have gained prevalence. To avoid the potentially high cost of out-of-network care, most consumers begin their plan shopping process with one question: “Which plans cover my family’s doctors and our local hospitals?”

Multi-carrier digital platforms have made answering this question far simpler than when paper SBCs and carrier-specific portals ruled the plan selection and enrollment landscape. Today, many multi-carrier exchanges and state-based marketplaces have integrated shop-by-doc functionality — the ability to filter available plans to show only the options that cover users’ preferred doctors and providers — into the plan shopping process.

Offering shop-by-doc has material benefits. Consumers avoid out-of-network fees and purchase a plan based on what’s actually important to them. Ideon, currently powering shop-by-doc functionality on several leading private marketplaces and state-based exchanges, has found that about 70% of consumers shopping for health plans will add their providers as a search criterion. For health insurance platforms, shop-by-doc is no longer an optional feature — it’s an essential component of a modern, integrated, fully-digital plan shopping experience.

Integrating shop-by-doc functionality into the shopping experience

Despite shop-by-doc’s obvious benefits, there remain some holdouts among consumer and broker-facing platforms. Adding this functionality was, traditionally, a near-impossible endeavor. The industry lacked a centralized, standardized source of provider-network data from which platforms could power provider-centric plan shopping features. Acquiring this information, in a usable format, from hundreds of health insurance carriers was beyond their operational and resource constraints.

But that technical barrier no longer exists. Ideon has transformed shop-by-doc into a simple addition to any existing platform, by building APIs that enable platforms with quoting functionality to integrate shop-by-doc into their system, without acquiring and maintaining the underlying provider-network data. These APIs are a bridge to better user experiences, and, ultimately, better-informed health and financial decisions and a smoother enrollment process for all.

If you’re interested in delivering shop-by-doc functionality to your platform’s users, reach out to learn how Ideon’s data solutions enable tech companies to build robust decision support experiences.

Three ways benefits platforms can leverage the growing popularity of voluntary benefits

Executives and decision-makers at benefits-technology (BenTech) companies—HCMs, benefits administration systems, HR platforms, etc.—have a tough job: every few years, new industry trends force these vendors to shift their sales, product, and partnership strategies to align with the latest needs of brokers, employers, and employees.

One trend that has dominated the BenTech ecosystem in recent years: the rise of voluntary benefits. While employers have offered core benefits like medical, dental, and vision insurance to employees for decades, voluntary products are a more recent phenomenon. Voluntary benefits, as a category, includes a broad scope of services, including: 

  • long-and-short-term disability
  • mental health support
  • financial-wellness programs
  • identity theft protection
  • accident insurance
  • cancer insurance
  • hospital indemnity insurance
  • critical illness insurance
  • legal services
  • pet insurance
  • life insurance

These products, for which employees pay at least part of the cost, are increasingly a standard component of competitive, modern benefits packages. In 2021, 55% of voluntary benefits brokers reported higher sales compared to 2020 and 54% reported increased enrollment activity, according to BenefitsPro. Further, LIMRA predicts the nonmedical benefits market will grow 20% over the next few years. And it’s not only that more employers are offering voluntary benefits — employee participation is growing, too.

So what’s a BenTech to do? Platforms that simplify the benefits experience for employers and employees—from choosing benefits products to enrollment and administration—will be best positioned to take advantage of the voluntary trend. 

Here are three ways BenTechs can enhance their voluntary experience:

1. Offer the voluntary benefits employees desire. It’s no secret that today’s employees want flexible, personalized benefits packages that supplement core products—medical, dental, and vision insurance—with newer offerings. BenTechs that stay abreast of employee needs and offer the most popular voluntary products will undoubtedly have a leg up on their competition.

And what, exactly, do modern employees want? According to a recent survey by Buck, it’s all about financial wellbeing and supplemental health coverage: hospital indemnity insurance, critical illness insurance, accident insurance, long-term care insurance, and personal loans are among the fastest-growing voluntary benefits. On average, employers offer 12 voluntary benefits, Buck’s survey revealed.

2. Provide decision-support tools for a better enrollment experience. Gone are the days of employees selecting benefits by skimming printed collateral materials. Today’s workers expect an Amazon-like enrollment experience: easy product comparison, tech-enabled assistance at the click of a button, and personalized recommendations based on data and individual needs.

Leading BenTechs have significantly upped their capabilities in recent years, empowering employees to make more informed decisions and better understand voluntary products. PlanSource, for example, offers employees side-by-side plan comparison and helps calculate per-paycheck cost estimates, while its DecisionIQ feature provides personalized recommendations powered by AI and machine learning technology.

3. Focus on operational excellence to make enrollment and administration a breeze. Offer in-demand products? Check. Build an industry-leading, digitally-advanced enrollment experience? Check. But the final step for forward-thinking BenTechs is to make operational greatness and smooth client service core priorities.

A major operational challenge is the transferring of voluntary benefits elections from a BenTech platform to carrier systems, and confirming groups and employees are enrolled accurately. This is an essential task: data errors can cause critical coverage issues for employees, billing problems to be rectified, and, ultimately, reputational harm and client turnover. That’s why many leading BenTechs now leverage APIs to streamline data exchange with carriers. Indeed, according to Guardian, API-enabled benefits administration can save employers up to 200 hours per year and cut down on data errors.

For BenTechs, building a better voluntary benefits experience won’t happen overnight. But there are ways to make serious progress, without using significant development and operational resources. For more information about how Ideon can help, contact us here.

Ideon Releases 2023 ICHRA Map

*The 2025 ICHRA Map is Available here:

Over half of the U.S. is ICHRA-friendly in 2023

Today Ideon’s 2023 ICHRA map is live! This interactive tool highlights those counties and states where the Small Group to Individual ACA health insurance premium dynamics are conducive to ICHRA adoption.

We believe the 2023 landscape was highly impacted by Bright Health’s exit from the individual market affecting 16 states.  Bright has been a price leader in many markets and had Bright stayed in, we expect the number of ICHRA-friendly counties and states would have increased beyond that which is noted below.

Key findings:

  • Over half of the U.S. is ICHRA-friendly: in 26 states, the 2023 Individual Bronze plan premiums are equal to, or less than, those of Small Group.  This is a two state increase from 2022.
  • We are seeing Individual premiums across all metal levels continue to migrate towards parity with Small Group premiums, or be less expensive. In 16 states, the 2023 Individual Silver, and Individual Gold plan premiums are equal to, or less than, those of Small Group.  There was no change for Silver plans and an increase of two states for Gold plans.
  • Well known employer brands (i.e. the Blues, Cigna, UHC and Aetna, a CVS Health Company) continue to expand their Individual geographic footprints covering substantially all counties.  The availability of Individual plan options from these brands gives comfort to employees migrating from group health plans, often sponsored by these very same brands, to the individual market through an ICHRA.

Stay tuned for more insights on the 2023 ICHRA landscape. For information about Ideon’s ICHRA solutions, contact us here.

The health insurance and benefits industry has a data problem

In today’s world, data quality drives results—for good or bad. And for all the progress that’s been achieved harnessing data in the health insurance and benefits ecosystem, data problems are rampant.

We speak to you from the trenches, which is to say that Ideon is in the business of not only data connectivity, but also data accuracy. And in our experience, about 10% of employee enrollments have existing data problems—from incorrect social security numbers to inaccurate effective dates—that can and often does cause significant issues for members, employers, and carriers.

The fallout of poor data throughout the ecosystem includes: 

  • Members are arriving in doctors’ waiting rooms, only to be told their coverage is not in place. Scenarios like these are all too common. And while these problems are solvable retroactively, they cause undue frustration and time-wasting for members.
  • Employers are paying for coverage for employees who have long ago jumped ship, when termination is not done properly. And new employees may resent their employer when their benefits experience is rife with coverage issues.
  • Brokers and consultants are often responsible for ensuring coverage is intact. They also may be the ones charged with entering enrollment data into a broker portal or enrollment platform. So when there’s a data issue, they often bear the brunt of the blame. Aside from fielding calls from irate HR managers, brokers often take home lower commissions when enrollments are incomplete owing to data issues.
  • Carriers have been forced to set up costly systems and processes—such as large customer service operations—to deal with the consequences of poor data quality. Bad data can also mean significant premium leakage. And importantly, while many look to insurers to solve all data problems, it’s impossible for them to do so without the help of all the other entities involved.

Bottom line: The industry’s “dirty data” problem is pervasive, with detrimental ripple effects at scale. Consider: In our estimation, nearly 9 million employees in the U.S. could have a coverage issue.

What’s being done? Not enough. Many constituencies in the industry see data issues as unavoidable and insurmountable, resigning themselves to addressing the symptoms, not the disease.

We get it: These issues are daunting. They’ve been institutionalized to a startling degree. But with industry-wide collaboration, they’re also eminently solvable.

At Ideon, we have some thoughts on how this can be done. You can learn more about them here.

How Technology Reshapes the Decision Making on Rapidly Growing Markets

In this Relevant Software article, Ideon’s CTO Dan Langevin describes our journey – where we started, some challenges we’ve faced, and what the future looks like.

Decision Support Tools Are Modernizing the Employee Benefits Experience

Here’s how leading carriers and third-party platforms guide employees through their benefits journey with decision support technology.

It was inevitable.

The application of data, predictive analytics, and an intuitive user experience to legacy plan selection, enrollment, and year-round engagement processes is a benefits industry game-changer whose time has come.

From choosing the right benefits package to finding high-quality, cost-effective healthcare, today’s employees expect technology to help them make better benefits decisions. Combining data with advanced digital experiences, modern carriers and a new generation of technology platforms are doing precisely that.

To better understand the challenges and opportunities posed by decision support technology, John Emge, Senior Vice President, Carrier Sales at Ideon, recently moderated a webinar featuring three industry experts who are immersed in improving the employee experience through decision support tools: Dan Murdoch, CMO at Nayya; Jill Schlofer, 2nd VP, Implementation and Enrollment at The Standard; and Travis Symoniak, Senior Product Manager, Group Benefits Enrollment at Securian Financial.

In a briskly paced and engaging webinar, the four discussed:

  • The evolution from simple decision trees to advanced, data-driven experiences
  • The data powering decision support platforms
  • What’s driving increased employee demand for benefits decision tools
  • Lessons learned developing and deploying decision support tech
  • The future of decision support

Below we share five of the most actionable insights from the session.

You can watch the full webinar here.

1. Decision support must be an experience

Decision support should encompass an entire ecosystem that engages, educates, and provides recommendations before, during, and after the enrollment process, said Symoniak.

Decision support platforms today can leverage customer-disclosed data to make recommendations that are hyper-personalized, offering employees a strong and empowered understanding of what types of benefits they should pick and — just as important — why. “Whether I’m trying to plan for a voluntary surgery, or my kid’s braces, there is this accumulation of unique circumstances that we all experience,” Murdoch explained. “Benefits need to fit our unique mental, physical, and financial situations.”

To attain that level of personalization, employees must have a level of trust around sharing their data, and employers must follow all privacy and security best practices. But the upside is considerable. “The more you give, the more you get,” said Murdoch. “

It’s also important, Schlofer said, to circle back and help the employer understand whether they made the right choices of benefits for their employees.

2. Decision support gives employees confidence they’re making smart, informed choices

Benefits are the single most important financial decision we make each year, explained Murdoch. They are an essential tool for risk mitigation and planning for the seen and unforeseen. It’s critical that employers offer decision support that empowers employees.

The concept of demonstrating benefits and claims scenarios to employees is extremely powerful, Symoniak said: “We have invested in allowing employees to customize different claim scenarios and put themselves in others’ shoes. When you have a fall, or you hit your head playing softball, what does that claim process look like? What is the payment going to look like, what are you actually going to use those insurance products for?” Employees come away feeling confident they’re making smart, informed choices.

3. Decision support must extend beyond enrollment

Symoniak said the next step in the evolution of decision support is to extend it past periods of enrollment and qualifying events. The future is year-round engagement, as employees are shopping for medical care, getting a recommendation, and getting additional support.

Decision support should become the “go-to” for employees, employers, and brokers when employees experience important changes in their lives, notes Schlofer.

Murdoch noted that consistently evaluating the employee benefits experience is essential to building a best-in-class offering: How are you evaluating your strategy? How are you reviewing employee feedback? The composition of your workforce? How are you choosing your carrier and reviewing their plans to build a holistic offering?

4. Recent market changes are driving demand for decision support

“Two or three years ago there was not this level of interest in decision support,” noted Symoniak.

Indeed, the current labor crisis and rising inflation are major factors in the growing demand for decision support.

Employers are trying to figure out how to attract and retain the best employees, Schlofer explained. How can you use benefits to your advantage? In the recruitment process, help an employee understand what benefits choices they might have if they were to come on board.

Murdoch agreed: “It is absolutely to your competitive advantage to bring benefits decision support to recruitment and hiring. Hiring managers can tell candidates that the company has put together a best-in-class offering, and you don’t have to memorize all the options — we have a platform that helps inform your choices.”

Schlofer explained that inflation is also a factor: Employees should spend more time making these decisions, which can have a critical impact on their personal finances. Now is not the time to drop your benefits because you believe you can’t afford them.

Murdoch noted the economic advantage of decision support to employers. “This is definitely not the time to cut the number of benefits and the amount that’s being spent. But there is an opportunity to spend more intelligently across the entire spectrum of your workforce. Using decision support to identify the right plans for the right people for the right reasons can be economically advantageous to the employer.”

5. The future: A holistic approach to benefits

The industry will continue to move past the legacy driven, challenging dynamic of the traditional benefits selection process. Predicted Murdoch: “I see the future of decision support hitting all the major categories that are required to inform the best recommendations, taking into account lifestyle, habits, and health history. Employers will see ROI on such a holistic approach.” Further, he explained that a best-in-class benefits experience will increasingly feel familiar and intuitive, a step-by-step experience that feels to the user like, for instance, Amazon or TurboTax.

Symoniak said in order to achieve a holistic, year-round approach to decision support, it will be crucial to continue breaking down barriers to linking data to carriers. “We are going to need more real-time integration across the industry to support benefits decisions. Carriers need to partner with benefits administrators and third-party administrators to get additional information. It’s the topic of the time,” Symoniak said. “Yes to more APIs!”

 

For more insights into how decision support tools can elevate the employee benefits experience, watch the full webinar here.

How (And Why) To Engage Employees Beyond Their Corner Of A Business

How can business leaders increase employee engagement? It starts, Ideon CEO Michael Levin explains in his latest Forbes column, with engaging employees on aspects of the business outside of their daily responsibilities.

Benelinx’s Story: Using Ideon to seamlessly provide brokers with data from multiple carriers

“Ideon cleans up the big mess the industry has built”

With the agency management software Benelinx, employee benefits brokers access health insurance quotes from multiple carriers in a flash. The company was started by Rachel Zeman, who formerly ran a brokerage and was frustrated with the redundancies and errors that were par for the course in the space.

In contrast to the traditional, broken model, brokers using Benelinx’s quoting engine have to enter a client’s parameters just once to quote and compare medical plans from numerous carriers.

Backstage, Ideon’s APIs quietly power Benelinx’s quoting tool through seamless data exchange. (We’re the strong, silent type.)

Benelinx

Helping agencies compete nationwide.

  • The Benelinx system, with data from Ideon, allows brokers to get accurate health insurance quotes from multiple carriers, saving hours on every proposal.
  • Ideon makes it easy for Benelinx to expand into new states and offer additional products without the need to negotiate with and connect to additional carriers.

Background

Rachel Zeman built RiteHealth Solutions into a thriving benefits brokerage based in Boulder, Colorado In 2019, she sold that company and started Benelinx to offer other brokers access to the customized software platform she had built for her own firm. Benelinx relies on Ideon to make it easier for brokers to provide quotes that compare rates from multiple carriers.

Q&A

Tell us more about why you started Benelinx
When I ran a brokerage we had become increasingly frustrated with the industry’s archaic systems, which are littered with redundancies and errors that don’t make sense in the modern world. We’d ask, “Why do we have to enter the same client information five times into five different systems?” And there was never a good answer. So we decided to streamline the process and built applications on the Salesforce platform. I knew this was something the market needed and it wasn’t available.

What problems do brokers face getting quotes for health insurance?
Most agencies are still running their entire business on Excel spreadsheets. If they want to make a proposal for clients, they have to go to the websites of four, five, six carriers, and upload the employee census to each, then download a quote. Then they have to compare them because every carrier’s rates and requirements are different. The only practical alternative they had was to work with a general agent that had relationships with multiple carriers, but as brokers get larger they often want to bring more in-house.

How does Benelinx make that easier?
The broker just enters the parameters for a particular client and uploads the census one time. Then all we have to do is ping Ideon, and we get back everything that is available to the client based on each carrier’s underwriting requirements. Every time we demo the quote function to a broker they are blown away.

Why did you decide to use Ideon to power your quoting engine?
The only other option would be to go to all of the carriers directly. It would have been very painful. When we started, we tried to get carriers to give us their rates electronically, and most wouldn’t give us the time of day. If they did agree, the data they sent would have to be cleaned, verified, and put into a standard format. Every carrier uses its own system and way of transferring data. Ideon cleans up the big mess the industry has built.

Can you describe the experience of integrating Ideon into your system?
My developers would say they have had nothing but amazing support, starting when we were integrating Ideon into our system. The customer service was great, and all their technology was up-to-date.

What’s the biggest advantage of working with Ideon?
Ideon has made it easy for us to grow. They are adding new products, like level funded plans. That’s something our clients have been asking for so now we can plug it into our system. It’s so simple. We’ve also been able to expand nationally. If we didn’t have Ideon we would have to go state by state and convince every carrier to give us rates. I can’t fathom what that would look like.

How does your story fit into the broader industry picture?
Our industry is in the middle of a huge consolidation, and that makes it difficult for many brokers. There is nothing more important than maintaining boutique brokers that can help smaller-size businesses make complicated and expensive decisions about healthcare. Ideon is helping us offer a very affordable solution that lets brokers of all sizes compete.

 

Webinar: Decision Support Tools Are Modernizing the Employee Benefits Experience

Learn how leading carriers and 3rd party platforms guide employees through their benefits journey with decision support technology.

A new era of small group benefits

In this BenefitsPro article, Meg Collins, Ideon’s Chief Growth Officer, shares how the COVID-19 pandemic gave rise to a new era of small group benefits: More choices, access to advanced technology, and a better employee experience.