Benefit Trend Alert: EDI vs. API

When Employers and Employee Benefit Brokers think of upgrading an employee benefit program, they often think of new products, or richer benefits. Less thought is given to upgrading the process, which includes technology integration, streamlined administration, and the resulting employee experience.

While most Employers have moved away from “paper” enrollment and administration to leveraging technology, many Employers still operate in a traditional carrier connection environment, often referred to as an EDI connection. EDI connections still require manual intervention. Human Resource and Finance teams can spend manual hours keying benefit plan information into multiple systems. Every manual keystroke is an opportunity for an inaccuracy that could unintentionally derail the process and require considerable time and effort to resolve.

Leading HRIS Technology Providers and Insurance Carriers now leverage API connections. API connections are cloud-based connections that synchronize systems in real time. API connections streamline the benefit administration process, from enrollment, to life event changes, billing, and even claims, by eliminating the need for manual intervention and human error, reducing Human Resources’ most time-consuming tasks. Embedded APIs connections within the HRIS/Benefit Admin System enable direct integration with insurance carriers. In today’s complex world of “absence or leave management” API connections can also help employers, insurance carriers, and claimants ensure a smoother, and more accurate experience.

Not all HRIS/Benefit Admin Systems, and not all Insurance Carriers, leverage API connections. It is common for one – but not both – to leverage API connections, rendering the “technology advantage” mute. For employers who leverage a state-of-the-art HRIS/Benefit Admin platform that leverages API connections, such as Workday, UKG, or ADP, Employers should maximize this advantage to ensure that the Insurance Carrier they partner with for benefits, also leverages API connections. 

Human Resource Professionals should partner with a Benefit Broker to evaluate their HRIS and Carrier connections well in advance of the annual benefits renewal. And if necessary, make the change to a carrier with imbedded API connections to maximize their HRIS/Ben Admin investment.

Reach out to Navis Benefits Group if you would like to learn more about API feeds and how they can help your business.