Point solutions, i.e., specialized services that employers can utilize as part of their benefits programs to address specific health issues (e.g., diabetes management), are rapidly evolving to meet employers’ growing needs.
According to a Wellframe survey, 50% of organizations offer access to between four and nine healthcare and well-being point solutions, with some employers offering up to 12 offerings.
It is common for those who work in Human Resources or with employer-sponsored health plans to feel the burden of “point solution fatigue.” In today’s marketplace, there is an abundance of digital health solutions narrowly focused on helping employees improve specific areas of their health and well-being. The number of options can overwhelm employers, brokers, and consultants alike.
Point solutions play an essential role in our Medical Stop Loss group captive model. The right point solution(s) can improve employees' lives and significantly reduce an organization’s healthcare costs.
Below, we’ll discuss current healthcare trends, provide examples of common point solutions, and offer guidance on choosing the best point solutions for your organization.
The general trends that have been shaping the healthcare industry over the last few years include:
Many of these trends are now evident in the plethora of digital health solutions available to employers.
While the variety of point solutions available in today’s marketplace can be overwhelming, the good news is that technology has made it possible to scale many of these solutions to support employees.
Today, employers that self-fund their health insurance programs can identify almost any health problem or need in their claims data or employee feedback surveys and find a point solution to add to their benefits strategy.
Some common examples of point solutions include:
We’d like to note that while employers that fully-fund their health insurance programs have limited access to their plan data compared to employers that self-fund, they can still utilize employee feedback surveys to help determine which point solution is the right fit for their organization.
Given the multitude of point solutions available today, how do employers know which point solution(s) will be the best investment for their organization? Optimizing employee healthcare point solutions involves several key steps.
Start with a comprehensive assessment of your organization's current healthcare needs and challenges. For example, if you currently self-fund your healthcare plan, you can review your healthcare claims data to understand your cost drivers. If possible, you can conduct further analysis to understand the root cause(s) of the cost drivers. Examples of root causes include access to healthcare gaps, lack of preventive screenings, financial barriers, or mental health-related issues.
To help ensure utilization, it might be helpful to survey employees on their needs and what technology and solutions would be most beneficial to them.
Clearly define your objectives before implementing healthcare point solutions. Determine what success looks like for your organization and establish measurable metrics to track progress and return on investment (ROI). These metrics could include employee satisfaction, healthcare cost reductions, cost avoidance, better health outcomes, or improved turnover. It’s important to understand that some solutions will focus more on “soft dollar” impact than hard dollar returns.
Evaluate healthcare point solutions that align with your organization's needs, goals, and budget. Consider solutions that offer comprehensive features, scalability, interoperability, and user-friendly interfaces. Many point solutions are now expanding their capabilities and/or partnering with other point solutions to solve more than one problem.
Seamless integration among healthcare point solutions and existing systems is crucial for optimizing efficiency and data accuracy. Consider solutions that can easily integrate with each other, your organization's HR software, and other relevant platforms.
Effective communication and incentivization strategies are essential. Over-communicating is almost necessary to ensure employees know the solutions' benefits, hear the success stories, and understand how and when to access and utilize them.
Regularly monitor the performance of your healthcare point solutions using predefined metrics. Analyze data to identify areas for improvement and opportunities to enhance the ROI. Be willing to adjust strategies and configurations based on employee feedback and evolving organizational needs. Lastly, make sure you allow enough time for employees to engage with the solution and for outcomes and savings to develop.
It’s vital for employers to ask the right questions when looking for point solutions to add to their employee benefits strategy. Consider the following:
As we look into the future, several trends are expected to shape the future of digital health point solutions.
AI and Machine Learning (ML) will continue to play a crucial role in personalized healthcare delivery, enabling tailored treatment plans and interventions based on individual patient data.
Digital health solutions, such as telehealth, remote monitoring, and mobile health applications, will improve access to care, particularly in underserved communities and rural areas.
Integrated virtual care ecosystems will emerge, connecting patients, providers, payers, and digital health vendors to deliver comprehensive, coordinated care across the continuum.
Digital health solutions will increasingly focus on preventive care and population health management, leveraging data analytics and predictive modeling to identify at-risk populations and intervene proactively.
The evolution of healthcare and well-being point solutions has introduced a myriad of options, shaping the landscape for both employers and employees. To optimize employee well-being and healthcare, it is crucial for organizations to continually and carefully evaluate their needs while leveraging evolving technologies.
