Benefits enrollment and administration involve the transfer of large amounts of data between employers and their benefits providers. Employee data, benefits elections, claims filing, billing, evidence of insurability (EOI) processing and much more all must move from the policyholder’s HR technology system to their benefits provider’s. In the past, these transfers could only happen manually, which was time consuming and prone to human error. Today, electronic data transfer can take over much of this responsibility, with increased accuracy and efficiency.
Depending on the provider, two main types of data transfer may be offered to connect a company’s human resources information system (HRIS) or benefits administration system (BenAdmin) with the provider’s systems:
- Electronic data interchange (EDI): Also known as a “file feed,” this method exchanges data at a set cadence (such as weekly or monthly) and contains incremental or aggregate updates that occurred since the last file transfer.
- Application programming interface (API): This method connects directly with the provider’s systems in real-time, instead of through periodic file feeds. There is no delay in transmitting data from either the business or the provider.
While the two methods achieve the same general purpose of transferring data, it’s important for businesses to understand the differences when comparing benefits provider capabilities. Check out our new edition of The Inside Track (PDF) to learn more about EDI and API and how they can help improve the efficiency and user experience of employers of all sizes.
