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The 2023 Employee Benefits API Maturity Report

How advanced are benefits carriers in their API journey?

 

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Tag: Press

Ideon-LIMRA Report: Only 8% of Benefits Carriers Use APIs for Most External Connectivity

Posted on by Ideon

NEW YORK–(BUSINESS WIRE)–When it comes to API adoption, the employee benefits industry is maturing, albeit slowly, according to a new study from LIMRA and Ideon. The 2023 Employee Benefits API Maturity Report surveyed 25 leading workplace benefits carriers to assess the industry’s current API adoption, how close it is to real-time connectivity, and where leading opportunities exist for innovation.

The industry-first benchmark of medical, ancillary, and voluntary benefits carriers provided an API maturity score that measures the depth of carriers’ technological integration, evaluating factors like real-time data processing, API connectivity with external partners, and the degree of automation in their systems and data exchange procedures.

Specifically, carriers’ API maturity was ranked at five levels: nascent, developing, maturing, advanced and leading. Overall, the majority of carriers (56%) are “maturing,” with twice as many “developing” (24%) than “advanced” (12%). Additionally, although a vast majority of carriers (76%) report having API-enabled external connectivity, the actual utilization of APIs for their transactions remains extremely limited: only 8% of respondents said APIs are used for most or all of their external connectivity. This highlights a significant opportunity for the industry: embracing full-scale API utilization would lead to faster, superior member experiences and more efficient operations for carriers and 3rd-party platforms.

“These report findings underscore what we see every day: Most carriers are embracing the API revolution, but there’s still a vast untapped potential to meet the rising digital expectations of members, employers and brokers,” said Michael W. Levin, co-founder and CEO of Ideon. “The fact is, broad API utilization is, and will continue to be, a must-have for carriers seeking to win and retain business. The opportunities are there, and this survey pinpoints where carriers will get the biggest return on their API investments.”

Key findings include:

  • The gap between API development vs. adoption remains large: While 76% of carriers have some degree of API-enabled external connectivity, only 8% of respondents use APIs for most or all external connections.
  • Real-time data processing is limited: Although 48% have real-time data exchange capabilities, only 16% said most or all transactions are processed in real time.
  • EDI remains the dominant method for transmitting enrollment data: 88% of carriers use EDI, vs. 60% of carriers that use APIs to send and receive enrollment information. The overlap indicates that most carriers employ multiple methods, including some that still use paper and spreadsheets.
  • Digital enrollment presents a sizable opportunity: 32% of carriers do not offer the ability to digitally manage enrollment and change events.

To read the full report, please visit: https://get.ideonapi.com/ideon-limra-2023-report

About Ideon

Ideon is the way health insurance carriers and employee benefits providers connect with technology partners to deliver seamless consumer experiences at every stage of the member journey. Ideon is not the websites or apps one uses to choose a plan or find a doctor. It is the infrastructure, the ‘pipes,’ that simplify the complex exchange of quoting, enrollment, and eligibility data between carriers and the technology partners so that they can, in turn, deliver health and employee benefits to hundreds of millions of Americans everyday. Ideon’s APIs transmit billions of data points between InsurTechs and insurance carriers, powering an amazing benefits experience for all. Faster. Better. Awesomely. To learn more, please visit: www.ideonapi.com.

About LIMRA

Serving the industry since 1916, LIMRA offers industry knowledge, insights, connections, and solutions to help more than 700 financial services member organizations navigate change with confidence. Visit LIMRA at www.limra.com.

Vericred Releases Annual Map of ICHRA-friendly States

Posted on by Ideon

**NOTE: Ideon is the company formerly known as Vericred. Vericred began operating as Ideon on May 18, 2022.**

2022 ACA health plan data shows that in nearly half of U.S. states, an ICHRA could be a cost effective solution for small employers seeking to give employees more plan options

December 16, 2021 – Vericred, the API platform powering digital quote-to-card experiences in health insurance and benefits, today announced it has released its annual map of states where insurance premiums are most friendly to Individual Coverage Health Reimbursement Arrangements (ICHRAs). Employers who choose to offer an ICHRA provide a monthly, tax-free stipend that employees put toward the premium of a plan they choose from the individual market. 

The Vericred 2022 ICHRA Map shows the counties and states where an employee using an ICHRA would likely find Affordable Care Act (ACA) individual premiums equal to, or less expensive than, ACA small group plan premiums, i.e., “ICHRA-friendly.” For each state, Vericred calculated the difference between the average (across all counties) lowest-cost Bronze plan in the ACA small group and individual markets. 

Key findings from the Vericred 2022 ICHRA Map include:

  • Nearly half of the U.S. is ICHRA-friendly — in 24 states, 2022 individual Bronze plan premiums are equal to or less expensive than small group plan premiums
  • The number of ICHRA-friendly states grew by 26% since 2021, when 19 states were considered ICHRA-friendly. In 2020, only 16 states were ICHRA-friendly 
  • The top five ICHRA-friendly states, are, in order, Ohio, Georgia, Indiana, South Carolina and Mississippi
  • The five least ICHRA-friendly states, which have a market where premiums in the ACA individual market are most expensive compared with the ACA small group market, are, in order, Alabama, Oklahoma, Illinois, Tennessee and West Virginia
  • Some states have flipped – Maryland was ICHRA-friendly last year, and is now not ICHRA-friendly. In 2021, Kansas was among the least ICHRA-friendly states; now it is no longer 

“Historically, individual market premiums have been more expensive than small group premiums. Our data shows this is changing, and fast. ICHRA is now an attractive, cost-effective option for employers seeking to offer employees health insurance for the first time, or for those offering coverage, to control their benefit costs,” said Michael W. Levin, CEO and co-founder of Vericred. “We expect this trend to continue in the coming year, and as a result, we anticipate that more employers will offer ICHRAs.”

Resources

About Vericred
Vericred is the way health insurance carriers and employee benefits providers connect with new technology partners to deliver seamless quote-to-card consumer experiences. We are not the websites or apps you use to choose a plan or find a doctor. We are the infrastructure. We are the ‘pipes’ that simplify the complex exchange of quoting, enrollment and eligibility data between carriers and the technology partners responsible for delivering health and employee benefits to hundreds of millions of Americans everyday. Our APIs transmit billions of data points between InsurTech and insurance carriers, powering digital distribution across the insurance industry. Visit www.vericred.com.

GoCo Selects Vericred to Bring Groundbreaking Automation to Small Group Benefits Enrollment

Posted on by Ideon
**NOTE: Ideon is the company formerly known as Vericred. Vericred began operating as Ideon on May 18, 2022.**
 
Vericred’s enrollment and member management API enables GoCo to reduce new employer group setup time from weeks to days while automating key functions for benefits administrators and HR teams

November 16, 2021 – Vericred, the API platform powering digital quote-to-card experiences in health insurance and benefits, today announced that GoCo, a leading provider of flexible software solutions for HR, benefits, and payroll, has selected Vericred’s enrollment and member management API to dramatically simplify and speed up small group benefits setup, enrollment, and administration. With the API integration, GoCo can now activate new groups for their employer customers substantially faster—within days instead of weeks—without manually forging individual connections between its platform and carriers to facilitate data exchange. 

Simplifying Benefits Administration  

GoCo is an all-in-one HR platform that streamlines time-consuming HR tasks, including benefits administration. With the integration of Vericred’s API, GoCo is, for the first time, automating previously manual employee benefits enrollment tasks for its small business customers. The move will save employers and brokers time and resources as they add or update benefits for employees. 

“Vericred’s enrollment and member management API has helped us unlock an unprecedented level of small group benefits automation previously available only to medium and large employers,” said Nir Leibovich, CEO of GoCo. “As a result, we’ve freed up internal resources, and made the enrollment process faster, easier, and better for employers, employees, and brokers. That is a huge competitive advantage for us during open enrollment periods and beyond.”

Connectivity for Seamless Data Exchange 

Vericred’s API enables GoCo’s platform to seamlessly connect to Vericred’s network of health insurance and employee benefits carriers, making the exchange of quoting, enrollment, and eligibility data between health insurance carriers, brokers, and GoCo instant. As a result, employee data is now automatically transferred to the carrier, removing manual data entry steps for the benefits administrator, and speeding up the path to enrollment for both the employee and employer. Additionally, any errors in the data are corrected before they even reach the carrier. 

“We are thrilled to be GoCo’s partner in blazing a new trail for the small group benefits industry and demonstrating the power that instant carrier connectivity can unleash,” said Michael W. Levin, CEO and co-founder of Vericred. “The GoCo platform is truly maximizing its integration with Vericred’s enrollment and member management API to deliver tangible value to its users.”

Vericred Powers Benefit Sync Dashboard  

GoCo’s Benefit Sync Dashboard puts the power into the hands of the HR and benefits administrators, giving them the tools to craft and automate their preferred workflows. By integrating with Vericred’s API, GoCo’s dashboard now provides users with end-to-end visibility into the entire enrollment transaction, including each stage of the transaction when it’s with the carrier.

About Vericred

Vericred is the way health insurance carriers and employee benefits providers connect with new technology partners to deliver seamless quote-to-card consumer experiences. We are not the websites or apps you use to choose a plan or find a doctor. We are the infrastructure. We are the ‘pipes’ that simplify the complex exchange of quoting, enrollment and eligibility data between carriers and the technology partners responsible for delivering health and employee benefits to hundreds of millions of Americans everyday. Our APIs transmit billions of data points between InsurTech and insurance carriers, powering digital distribution across the insurance industry. Come join the community of insurance geeks creating a seamless digital quote-to-card experience. Visit www.vericred.com.

About GoCo

GoCo.io is modern HR, benefits, and payroll, built with flexibility and ease of use in mind. Founded in 2015 and headquartered in Houston, Texas, GoCo’s mission is to automate manual HR tasks and empower HR to make work a better place.

Unlike other HRIS platforms, GoCo is built to be flexible enough to support existing processes, policies, and providers, so that SMBs don’t have to change the way they work just to adopt a modern HR system. For more information, visit www.goco.io.