10 minute read
Leveraging Decision Support Tools Effectively
By Heather & Trevor Garbers
As benefits enrollment migrates to a digital experience to streamline administration and meet the needs of the marketplace, it can leave some employees behind as they try to comprehend what is offered to them and make the best decisions for their household. Decision Support Tools (DSTs) have entered the marketplace as a tech-driven strategy to help employees understand the benefits that are offered to them and make informed decisions on what will be best for them and their family.
DSTs are a software platform that typically asks the employee questions about their lifestyle (expenses, household, financial goals), before educating them on their benefit options and using data to make personalized benefit suggestions. Their goal is to help better engage employees in benefits by explaining them in a simpler format, and helping them to narrow down the options with recommendations based on their unique needs
With the splash DSTs are making in the marketplace today, it is important to know what they are, how they work, and when to leverage them Sara Chehrazi (Sara) with Nayya, Seth Haight (Seth) with Brite, and Brian Harrison (Brian) with SAVVI, and are here to share information on what Decision Support Tools are and how to leverage them effectively.
Decision Support Tools (DSTs) are newer to the marketplace, can you explain what they are for those that are not familiar with them?
Seth - DSTs are one small piece of a large communications “puzzle. When distributed correctly to employees, they can be a huge driver in helping them feel confident when making benefit elections. There are various approaches and factors that impact what support tool will be best suited for a particular employee population, but at the end of the day, they all strive to do the same thing... drive solid benefits education to help employees feel confident when electing the benefits being offered to them.
Brian - DSTs help employees select health and supplemental group insurance that best fits their unique situation. Ideally, they create personalized recommendations to allocate benefits spending optimally toward health, emergency and retirement savings.
Sara - Benefits are complicated to the average consumer, and the way the industry communicates them only perpetuates the problem. If you look at other consumer experiences such as purchasing a flight or selecting your next TV show, not only is the experience intuitive, but you also receive recommendations based on your previous purchase or watch history as suggestions on what to do next. Benefits should be the same way DSTs can help to communicate employee benefits packages in a way that's digestible, informative, and intuitive. Through the use of countless data points across a person’s health, wealth, and lifestyle preferences in conjunction with a survey; these solutions provide consumers with personalized recommendations along with an explanation of why those benefits are being recommended.
The goal is twofold: a) To drive consumer confidence by providing a curated list of benefits to enroll in and b) To promote financial peace by acknowledging that each household operates with a single wallet, protecting them from costs that exceed their means.
In an online self-service enrollment, what type of results do you see when a DST is used vs without?
Brian – We’ve seen dramatic increases in HDHP adoption, 401k savings and supplemental benefits enrollment for employees that use DSTs vs those that enroll without DST guidance. This includes 35% higher adoption rates of supplemental benefits over previous years and in some of our early results for 2023, annual enrollment showed triple digit increases in the adoption of critical illness, accident and hospital indemnity coverage.
With DST guidance, users feel more confident about their choices, and have a better understanding of the totality of their benefits. For example, how different health and wealth accounts can help them save now and in the future. Positive results are a function of showing the value provided by products like critical illness, accident and hospital indemnity in a personalized way. Participation is key to driving these outcomes. Employers who actively promote and integrate DSTs see 10x the participation in our experience.
Sara - Results will always vary based on things like industry, the workforce’s computer literacy, the number of benefits offered, etc., but we have received feedback from our clients showing:
Administrative time savings - that means reduced calls and emails to HR specialists and call centers because employees are better able to self-service during the enrollment event.
Improved employee experience - 75% of our users indicated they felt more confident in benefits decisions. Increased financial equity - employees are either contributing more to their HSAs, 401ks, and/or purchasing supplemental health to help ensure they have adequate coverage.
We also see our users on average participate in voluntary benefits (for example Accident, Critical Illness, Hospital Indemnity) at a 82% higher likelihood compared to the average voluntary benefit participation rate of Non-Nayya users.
What are some lessons learned when it comes to effectively implementing a DST?
Seth - My top 2 (of so, so many):
The support tool is only one piece of an effective communications strategy. It must be deployed appropriately to employees (considering different generations, industries, languages, etc) and easy to engage in.
It is important to include the HR team responsible for deploying and educating employees about the tool in the evaluation process long before implementation begins. These are the people in the organization that know their population the best and how they will engage and utilize the tool in the most effective manner. It's easier to promote a product when you feel comfortable using it and know it will be effective.
Sara - The first lesson we’ve learned is the importance of delivering a seamless, low-lift implementation for employers and benefits consultants, which is why we have two ways to implement the tool:
Embedded integrations to create a one-platform experience. In an integrated experience, we don’t require anything from the employer it’s a turnkey solution where we use all the benefits information from the HCM.
Single-sign on (SSO) which is a standalone solution that takes the member from the DST back into the HCM for a seamless employee experience during the enrollment process.
Another critical element of successfully implementing a DST is top-down excitement and value realization from the employer groups. This includes explicitly bringing attention to the DST as a tool for employees during. Open Enrollment ranging from a dedicated announcement from HR or people managers, to plugging it during a company-wide meeting. Regardless of industry, executive buy-in creates an environment that allows for maximum engagement with the product. An employee's trust in these tools is boosted when they hear their manager and leaders across the organization talking about and endorsing it.
Brian - The more integrated the DST is in the enrollment flow, the higher likelihood of positive outcomes. Employees tend to want to get through their annual open enrollment quickly, and so they often just re-enroll in the previous year's benefits, even if they are not the best fit for them or leave significant gaps in coverage. DSTs lead to better outcomes for employees (more personalized coverage), employers (reduced costs) and brokers or carriers (increased premiums). Promoting the platform and educating employees about the value of the DST, makes a meaningful difference. If employees know that taking a few extra minutes during open enrollment will save them significant money over the course of a year, they’ll invest that time. Finally, onboarding has to be easy and seamless to minimize the impact on the HR team and broker at a busy time of year.
In a post-pandemic world, technology and digital themes will take center stage in creating new models of success as remote, hybrid and other work arrangements become mainstream. Advancements in technology will present significant opportunities for organizations to create engaging employee experiences to help them learn about, enroll and take advantage of their benefits.
What is the future for DSTs?
Sara - We believe that the DST should be as dynamic as the people using it. This means a few things:
With the proliferation of AI and ML, you can craft a UI and UX that is nimble enough to cater to the individual going through the platform, providing more or less education based on their knowledge of benefits.
More data (such as real-time financial insights and first-party information) means increased personalization and higher accuracy when it comes to recommendations. Engagement during open enrollment is the beginning of a consumer’s journey and helps them to choose their benefits, but we also feel a responsibility to help them use them. The future of DSTs includes our latest product, Nayya Claims, which automates the processing and submission of supp health claims on behalf of consumers.
Brian - Historically DSTs have only focused on the health plan decision. While this is arguably the most critical piece, it’s just one component of an overall benefits and individual financial plan. By helping users decide on the “next best action” and where their benefit dollar is best spent, a large number of options present themselves: a new voluntary benefit, increased HSA contributions, increased personal savings or saving toward retirement. DSTs will continue to be more integrated, holistic and personalized as time goes on. Aligning and integrating benadmins, decision support providers, retirement plan providers and carriers can ensure participation and positive outcomes. We also see the power of AI and ML continuing to improve the communication of recommendations, quality of guidance and the enrollment experience overall.
Sara Chehrazi, VP of Partnerships, Nayya - oversees relationships with carriers, consultants, and HR tech partners, driving strategic initiatives for mutual success. During her time at Nayya, Sara has orchestrated innovative solutions to enhance the value delivered to partners as well as to Nayya's end user: the employee. At the heart of it, Sara takes pride in building and operating a company whose mission is to give consumers peace and confidence in their benefits.
Seth Haight, VP, Broker Relations, Brite - leads broker partnerships and strategy for Brite. Before joining Brite, he was a Director of Health & Benefits at WTW and held various roles with major medical carriers. He's worked in the employee benefits industry for over a decade, with a focus on employee benefits education and engagement.
Brian Harrison, President, SAVVI - has over two decades of financial services experience as a producer, sales leader and division head and has served as the President of SAVVI since 2018. A native of the Boston area, Brian holds degrees from Middlebury College and the MIT Sloan School of Management as well as the CFP®,CLU®, ChFC®, CLTC designations. Brian also once served as the lead singer of the long defunct 80s cover band the Reaganomics.
