Scott Evans benefitexpress

The Alphabet Soup of Carrier Integration:

EDI vs. API

Bruce ShutanContributing Editor

Employee Benefits News/Advisor

Moderator

Scott EvansChief Product Officer

benefitexpress

Presenter

Electronic Data Interchange (EDI) - Computer-to-computer exchange of business documents in a standard electronic format (file feed) between business partners.

EDI vs. API – WHAT IS THE DIFFERENCE?

A typical manual process looks like this The EDI process looks like this–no

paper, no people involved

Application Programming Interface (API) – A software intermediary that allows two applications to talk directly to each other instead of through a file feed.

EDI vs. API – WHAT IS THE DIFFERENCE?

EDI vs. API – WHAT IS THE DIFFERENCE?

EDI API

BUSINESS ATTRIBUTES

Partner-oriented Application-oriented & user-oriented

Industry standards based Technical standards based

Business application friendly Mobile device friendly

Medium length deployment Fast deployment

Standardized message formats. Driven mainly

by standards bodies

Ad hoc message formats. EDI formats can

be used in principle, but only applicable for

basic implementations. Driven mainly by the

service implementer

System of records System of engagement

Partner on-boarding requires a technical

and business workflow

Partner on-boarding is typically simpler

Services are well defined and do not

evolve regularly

Services are defined via APIs, they require a

full-fledged lifecycle management

How often does API carrier integration come up in conversations with clients when compared to 2 years ago?

☐Much more frequently

☐More frequently

☐About the same

☐Doesn’t come up

POLL #1

API is the EDI of the 21st Century; a

better way to encapsulate and transmit

information.

• API technology syncs data B2B

in real-time

• Reduces cost and time when compared

to developing EDI feeds

• Improves customer experience with

streamlined carrier data integrations

• Users receive advanced features easier,

faster - and at less of an expense to you

Example: Human Capital Management (HCM) Solutions and API

• HCMs are not specifically designed to handle benefits administration

• Web-based APIs can make HCM ecosystems more flexible

• Brokers can encourage clients to integrate their HCMs with “best-of-breed” benefits administration technology solutions allowing for a more positive employer – and employee –experience

EDI vs. API – Why should brokers care?

Source: Bruce Shutan - EBA

Recruiting &

onboarding

Payroll management &

processing

Risk mitigation

& compliance

Time &

attendance

management

Decision

support

Talent

Management

Paperless HR Employee benefits

management

How have you responded to the proliferation of Human Capital Management (HCM) software?

☐ I’ve added HCM to my portfolio of products

☐ I’ve formed partnerships with HCM providers

☐ I’m evaluating an HCM strategy

☐No change. This doesn’t affect me

POLL #2

What are the major EDI / APIlimitations facing brokers?

• In order to connect via EDI, many carriers require a company to have over 100 employees

• API is better and more flexible than EDI, but currently, few carriers offer API integration

• API’s vary between systems

Carrier Integration Questions to Consider When Selecting a Benefits

Administration Technology Platform for your Clients

✓ What type of carrier relationships do you have?

✓ Can you describe your integration with

carriers / HCM systems?

✓ Do you offer both EDI and API integration?

✓ Do you have automated EOI?

✓ What is the timeframe for approvals?

✓ Can your systems provide real-time updates?

Additional questions to consider

✓ Is your benefits technology provider present and responsive to clients?

✓ Does your benefits technology provider take complete

ownership of any projects or issues across all areas of

benefits administration?

✓ Do they seek to find a solution that will meet

the client’s needs?

✓ Do they employ a consultative approach built on process

and best practices for all system and regulatory changes?

✓ Do they anticipate the client’s and their employees’ needs

beyond the issue at hand?

Where are you in your journey with benefits technology?

☐ I’m satisfied with my benefits technology offerings

☐ I’m evaluating partners for benefits technology solutions

☐ I’ want to learn more about benefits technology

☐ I have an in-house solution for benefitsadministration

POLL #3

QUESTIONS?