CHARLESTON, S.C., April 16, 2021 /PRNewswire/ -- A commissioned Total Economic Impact study conducted by Forrester Consulting on behalf of Benefitfocus (NASDAQ: BNFT) concluded that the Benefitplace single platform solution improves data quality and automates processes across the ecosystem, allowing health plans to reduce costs by millions of dollars and improve operating flexibility to adapt to unexpected market trends and changing customer demands. Benefitfocus is an industry-leading benefits technology platform that simplifies benefits administration for health plans, employers and brokers.
The findings come from a commissioned study conducted by Forrester Consulting, one of the most influential research and advisory firms in the world, on behalf of Benefitfocus and published in March 2021, examining the benefits that health plans may realize by deploying Benefitplace, Benefitfocus' single platform solution. To better understand the impact associated with this investment, Forrester interviewed a health plan that uses Benefitplace. The U.S.-based organization serves about 2 million members and boasts more than $3.5 billion in annual revenue.
"With the implementation of Benefitplace, the health plan was able to reallocate administrative budget and resources to market differentiating initiatives, often around better meeting customer needs," the study concludes. "Through improved flexibility and agility from the Benefitplace platform, the health plan increased their resilience and improved their ability to withstand whatever the future might bring."
Among the key findings for quantified benefits:
- Retiring legacy systems avoided $6.3 million in IT development costs.
- Moving enrollment and billing online saved $1.4 million in paper and postage.
- Process automation combined with improved data quality increased operational efficiency, saving $1.1 million in resource costs.
- Standardized data feeds and error resolution functionality improved scalability, saving $0.6 million in avoided headcount.
Additionally, the study found the Benefitplace platform delivered:
- Higher Net Promoter Scores (NPS) from improved customer experience.
- Improved business flexibility and agility.
- Confidence and reliability through partnership.
- Learnings from advisory councils, creating a unique problem-solving environment.
After reviewing costs, including implementation, managed service fees (adoption services, hosting and security, and maintenance) and internal labor, the TEI study showed this health plan saved at least $9 million over three years.
The TEI Study Framework and Methodology
Forrester took a multistep approach to evaluate the impact that Benefitplace can have on an organization:
- Due Diligence: Forrester analysts interviewed Benefitfocus stakeholders and Forrester analysts gathered data relative to Benefitplace.
- Customer Interview: They interviewed decision-makers at the health plan using Benefitplace and obtained data with respect to benefits, costs, and risks.
- Financial Model Framework: They constructed a financial model representative of the interviewees' experiences with Benefitplace.
- Case Study: Forrester employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester's TEI methodology provides a complete picture of the total economic impact of purchase decisions.
Connect with Benefitfocus
Click here to view a video on the study from One Place, Benefitfocus' annual conference bringing together benefits and health care leaders from across the country.
Benefitfocus (NASDAQ: BNFT) unifies the entire benefits industry through innovative technology solutions that bring efficiency, cost savings and simplicity to employee benefits administration. Our powerful cloud-based software, data-driven insights and thoughtfully designed services help employers, insurance brokers, health plans and suppliers address the complexity of benefits enrollment and engagement, while bringing easier access to health, wealth and lifestyle products through a world-class benefits experience. Our mission is simple: to improve lives with benefits. Learn more at www.benefitfocus.com, LinkedIn, Facebook, Instagram and Twitter.
DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements. Actual results might differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include: volatility and uncertainty in the global economy and financial markets in light of the evolving COVID-19 pandemic and uncertainties arising from the recent U.S. elections; our continuing losses and need to achieve GAAP profitability; fluctuations in our financial results; our ability to maintain our culture, retain and motivate qualified personnel; the immature and volatile market for our products and services; risks related to changing healthcare and other applicable regulations; risks associated with acquisitions; cyber-security risks; the need to innovate and provide useful products and services; our ability to compete effectively; privacy, security and other risks associated with our business; and the other risk factors set forth from time to time in our SEC filings, copies of which are available free of charge within the Investor Relations section of the Benefitfocus website at http://investor.benefitfocus.com/sec-filings or upon request from our Investor Relations Department. Benefitfocus assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
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SOURCE Benefitfocus, Inc.