Modern benefits platforms will become an even more essential tool to health plan providers and brokers in the coming year as they allow them to reach the end consumer more effectively. (Image: Shutterstock)
Artificial Intelligence (AI) and big data continue to mature into a collection of powerful technologies and tools that give businesses a competitive edge, disrupting industries along the way. AI's cornerstone advantage is that it allows organizations to better leverage their data assets to understand, plan, and act for likely futures, at a speed and accuracy that wasn't previously possible. These capabilities are especially important as organizations grow increasingly complex with the addition of remote work and gig-workers.
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In the benefits world, big data and AI offer employers and brokers an opportunity to maximize the impact and efficiency of their offerings and human resource programs. The best employers know their success is tied to a healthy and productive workforce. In 2021, and in the wake of COVID-19, the role of these two technologies will grow as companies continue to transition to long-term remote work, tackle COVD-19 related expenses, educate employees about their health benefits, and introduce benefits platforms to address individual needs better.
Remote work and AI
As more companies explore long-term remote work strategies in 2021, AI solutions will be tapped for everything from talent acquisition to employee engagement. While there are upsides to remote work, we've also learned a few downsides, including managing a healthy work-life balance. As home offices popped up across kitchens and living rooms in 2020, the natural barriers between work life and home life deteriorated. In 2021, we'll likely see AI play a more significant role in helping employees avoid burnout through tools that encourage real-time engagement, provide individualized recommendations on how people can do their best work, and robot coaches to help with mental health.
For HR teams, AI-powered solutions will quickly flag employee roadblocks and prioritize those most at risk. Greater use of remote teams also means more integration of HR and day-to-day collaboration tools. Using AI to bridge productivity gaps and multiple systems across companies will improve job satisfaction and increase output.
HR data and COVID-19
The pandemic sped up the increasing role employers play in their employees' financial, physical, and mental well-being and the critical importance of HR data for human resource teams. HR data analytics' power is in how it can proactively assist in more accurately predicting annual benefits costs—a tool that will become crucially important for families, employers, and health plan providers as they plan for this year.
By analyzing HR data from across the country and organizations, it is possible to project the 2021 health costs of a young family of four. The analysis is based not just on health care costs in 2020 but also on what the family of four is likely to encounter in 2021. This emerging, critical decision-making data will play a key role for brokers, employers, and health plan providers as they navigate both expected and unexpected changes.
The breadth of HR data and the improved accuracy of machine-learning techniques enable health plan providers to quickly identify fraud and costly reporting errors. Unfortunately, the level of fraud in the U.S. health care system is approaching $300 billion annually, even, in years it is not coping with a global pandemic. With COVID-19 related fraud also on the rise, health plan providers and employers who use HR data analytic tools to spot and flag outliers could save themselves hundreds of thousands of dollars.
Role of AI in HSAs
In 2021, health plan providers and employers expect employees to prioritize flexibility and personalization in their health care coverage to meet their unique needs and challenges.
According to Benefitfocus' data, since 2008 enrollment in health saving account (HSA) offerings has grown by 54%. With budgets top of mind in 2021, employers and employees will continue to use these financial tools to save money and lower medical plan premiums. At the end of the day, HSAs are a bet on expected health care costs. Brokers, health plan providers, and employers will continue to leverage AI to educate employees about their medical costs and personalize their benefits based on their current and projected future needs to maximize the benefits of an HSA.
Greater adoption of modern benefits platforms
Data insights are wonderful tools with the potential to transform a benefits program. However, there are not enough data scientists in the world to manually cope with the amount of raw benefits data produced by even mid-sized organizations. Instead, insight-driven benefits administration relies on automated platforms to collect, aggregate, streamline, and analyze data from multiple systems to produce actionable steps to drive value. These platforms will only become more essential as companies continue to adapt to the changes seen in 2020.
As priorities continue to shift in 2021, the demand for employee data to evaluate workplace wellness programs, retention, and benefits will grow. But seamless interaction with personalized benefits program offerings will likely provide the most significant avenue for demand growth of modern benefits platforms. Similar to Netflix, Amazon, and Google, modern benefits platforms aggregate data to provide consumer recommendations and actionable steps at the right moment in their benefits journey.
Modern benefits platforms will become an even more essential tool to health plan providers and brokers in the coming year as they allow them to reach the end consumer more effectively. The streamlined and packaged data delivered to the end user creates actionable moments that translate into year-round engagement and lower costs for health plan providers.
Benefits Insights in 2021
Grappling with COVID-19 will continue this year. And despite the ongoing uncertainty, HR data and AI will continue to drive evolution in the benefits space. While many things changed in 2020, data is still the most dependable way to understand what is happening now and predict the future. As everyone adjusts to the changes on the horizon, we will continue to rely on the data and insights these tools to support the positive and healthy growth of the benefits ecosystem.
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