Electronic and Aggregated Premium Billing:



Self-Service Web Portals Deliver Multiple Benefits to Carriers and Producers

– Published: October 2009, Health Insurance Underwriter magazine

Author: Dennis Prysner, Chief Project Officer & SVP, HealthPlan Services

Boasting benefits ranging from streamlined service processes and reduced administrative costs to higher customer satisfaction ratings and retention, self-service Web portals have emerged as a smart strategy for carriers seeking a cost-effective way to connect with producers, employers and individual plan members.

A recent survey by Frost & Sullivan found that 28% of insurance companies currently offer their customers access to self-service portals. Among the primary reasons cited for launching portals were more convenient applications for customers (27%), reduced operational costs (17%), increased interest in and demand for self-service offerings (14%) and the time savings they offer customers (14%).

Beneficial to all stakeholders - carriers, producers and members – Web portals introduce a level of convenience that is not possible in traditional paper-based communications. They eliminate delays in responding to information requests and service questions, resulting in measurable improvements in satisfaction ratings and accelerated sales and renewals.

There are also user-specific benefits, both tangible and intangible, to be realized from harnessing the power of the Web.

Carrier Benefits & Considerations

Among the most significant benefits carriers realize from self-service Web portals are reduced administrative costs, increased customer satisfaction and improved retention.

For example, simply by providing customers with the ability to view, reconcile and pay their premium billings online, carriers can increase efficiencies and significantly reduce the costs associated with paper-based billing. E-billing also eliminates the human errors that plague paper processes by automating bill generation, delivery and payments. Further, because customers no longer need to generate paper or write checks, they are less likely to miss due dates, which reduces lapse rates.

The convenience of Web portals has also been shown to increase customer satisfaction and, as a result, retention. That alone is worth the investment, given Gartner’s estimates that the cost of acquiring a new health insurance customer is five to 10 times greater than the cost of retaining an established one. Further, once a portal is deployed, the opportunity exists to cross-sell other products based on business rules, as well as to promote new services, options or capabilities that are impractical or expensive to communicate via mail or phone.

Producer Benefits

For producers, the dawn of the self-service Web portal has brought about new opportunities to strengthen selling capabilities, expand business and increase profitability.

Convenient, anytime access to marketing materials and rate information on multiple products, as well as the ability to quickly generate comprehensive proposals and process applications online speeds the sales cycle. Additionally, the ability to review and select plan alternatives to address changing client needs accelerates the renewal process.

By providing access to in-depth product and plan information at their convenience, self-service Web portals can also compress the learning curve that often prevents producers from expanding their product portfolios in response to emerging trends, such as the growing popularity of individual and voluntary plans.

Offering agent-facing self-service web portals also helps producers enhance the level of service and support they provide to their clients. In many cases, agents are able to leverage the portal to provide specific services on behalf of employers or individual plan members. For example, members may delegate to their broker or agent the authority to utilize the portal to assist in conducting or completing work or checking the status of applications, medical underwriting, claims, etc. Some agents will even link enrollment portals directly to their personal websites, which can help strengthen the client relationship by conveying a full-service image and delivering the convenience of a one-stop-shop.

Finally, Web portals can stream line business processes by providing real-time access to such critical data as book of business and sales activity reporting and commission statements. The ability to review client underwriting status, as well as policy billing history and status, can also help producers troubleshoot problems and intervene when necessary to avoid any negative impact on the relationship.

Employer/Individual Benefits

For employers and individual plan members, Web portals offer a convenient way to manage benefits and coverage. This includes real-time access to claims history, status and explanation of benefits, as well as the ability to review benefit summaries, obtain policy, certificate and ID card materials, make plan or benefits changes and terminate, renew or select new coverage.

For employers in particular, self-service portals streamline the overall administration process for group, voluntary and even individual products. They allow for easy member enrollment or termination, as well as changes to member benefits and family makeup. Portals also provide easy access to electronic administrative and procedure manuals, a convenient way to order replacement ID cards and secure email communications with service centers.

Perhaps the most valuable benefits are e-billing and consolidated list bills. This is particularly true for those with multiple products, including medical, dental, vision, life and long-term care, each of which would traditionally require a separate premium invoice.

When Web portals include electronic and list bill features, a single invoice can be issued that encompasses all coverage premiums. This can then be reconciled, any necessary adjustments made and payment submitted – all without generating a single piece of paper.

Challenges to Address

Though benefits are numerous, there are some challenges to self-service portals. The most significant is end-user adoption.

For some plan members, concerns over security and reliability limit the appeal of processing transactions electronically. Carriers can typically overcome these anxieties by focusing on educating users about the many benefits web-based transactions can bring, and by providing easy access to ongoing support and even training.

Another challenge to adoption is the reality that, as long as there are alternatives to the Web portal, some percentage of users will always follow the familiar, less efficient offline path. As such, some carriers have taken an “all or nothing” approach that requires use of the Web portals. Caution is advisable, however, because while this can be effective with “captive” audiences like producers, it can backfire with employers or individuals who may resent the forced change.

Finally, the theory of “build it and they will come” does not work with the Web. Successful adoption of self-service Web portals requires a well-defined strategy for driving traffic to the site. This can include marketing portal availability through advertising, search engine optimization, etc.

Critical Considerations

In addition to a strategy for encouraging end user adoption, there are five critical considerations carriers must address to ensure the immediate and long-term success of their Web portals:

• Features and Functionality: The portal must address the comprehensive needs of the target audience. If it does not, and users must still visit multiple sources to gather needed information, adoption will be limited.

• Usability: It must be user-friendly, including easy navigation and the ability to complete processes with as few clicks as possible.

• Scalability: The ability to seamlessly and transparently monitor for and adjust to spikes in traffic with no loss of responsiveness is critical. This is particularly true if the portal is targeting a very broad user base such as a national agent population or in support of direct-to-consumer sales. It is important to note the scalability applies to both the application and the supporting infrastructure.

• Availability: The portal must be available to users 24/7/365 in its full capacity. It defeats the purpose if access to some or all of the portal’s features is limited to business hours.

• Support: When properly designed, a self-service Web portal will be self-explanatory and easy to use without training. However, it is important to offer some type of real-time support for users who run into problems. This can range from online tutorials to live chat and even a support hotline.

Build vs. Buy

Perhaps the most important element of success when deploying a self-service Web portal is ensuring that the appropriate resources are dedicated to its design and development. For many carriers, this can pose a significant challenge as it is often difficult to divert limited internal IT resources away from other corporate priorities. It can also be a costly proposition if the necessary skills and expertise are not available, or if the existing infrastructure is insufficient to deliver the required levels of scalability.

Post-deployment, ongoing resources must be dedicated to maintaining the portal, in particular ensuring that the information and tools available in the site are current and accurate. For example, when a new product is set to launch, the portal must be updated accordingly. Again, limited internal resources and competing priorities can make it difficult to ensure that the necessary changes are ready to go live in conjunction with the release.

In these situations, outsourcing can be a smart investment – one that will deliver a maximum return on the carrier’s investment. Carriers should look for a service provider with a proven track record of successfully designing, launching and managing self-service Web portals. This should include an experienced, dedicated IT staff with the capacity to meet deadlines, and the technological infrastructure to monitor and support peaks and valleys in traffic volumes.

Carriers that prefer to retain some systems in-house should also look for service providers that offer the flexibility of integrating outsourced e-services capabilities with internal hosted Web portals. This eliminates the need for users to log in to multiple sites and ensures a smooth and consistent experience.

A Smart Investment

Self-service Web portals can deliver a substantial return on investment for carriers, and arm producers with the tools they need to grow their own (and the carrier’s) business. They can also generate the goodwill and customer satisfaction that increases retention.

All it requires is the willingness to dedicate the resources necessary to deliver a portal that addresses the comprehensive needs of the target audiences, is easy to use and enhances the overall customer experience. When done right, self-service portals allow carriers to leverage the power of the Web to deliver maximum convenience and customer support while reducing costs and streamlining processes.

About HealthPlan Services

HealthPlan Services (HPS), a Water Street Healthcare Partners affiliate, is the largest independent provider of service and technology solutions to the insurance and managed care industry. Since 1970, HPS has offered customized administration and distribution services to insurers of individual group, voluntary and association plans, as well as providing valuable solutions to thousands of brokers and agents that sell into this market. HPS proprietary, scalable technology provides innovative consumer-facing solutions that are turnkey self-service tools for our insurance carriers and distribution partners. HPS offers an ever-expanding array of services to a diverse and growing client base, and administers products that include medical (PPO, HMO, indemnity, consumer-driven), dental, vision, life, disability, long term care, limited medical and various other ancillary insurance. HPS is committed to providing extraordinary service to its customers.

Contact Us:

If you are interested in HPS’ administrative solutions and services, please email solutions@ or call 800-237-7767.

If you are an agent/broker, please email sales@ or call 800-545-6441.

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