Return on Investment for Web Based Enrollment System Implementation. DATE: October 2011 NAME: Pani Tademeti TITLE: NCFlex Program Manager
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2 Return on Investment for Web Based Enrollment System Implementation DATE: October 2011 NAME: Pani Tademeti TITLE: NCFlex Program Manager
3 What is NCFlex? State of NC s pre-tax flexible benefits program Dental Vision Critical Illness Cancer 243,036 participants AD&D Term Life Health Care Spending Account Dependent Day Care Spending Account Available to state agency, university and select community colleges Return On Investment for Web Based Enrollment System Implementation Pani Tademeti
4 Program Growth
5 NCFlex Milestones NCFlex Program introduced Flexible Benefits Website Benefits Guide & Enrollment Form Enhancements Enrollment Form Pilot Online 727 participants launched imaging/ Enrollment 161,551 Perforated Form NCFlexOnline.org participants Benefits Video Enhanced ncflex.org launched State gov t radio ads Implement Online Enrollment 243,036 participants Flex Tales No Cost Core AD&D
6 Growing Pains Many payroll systems throughout the state NCFlex coordinates with 32 payroll systems Manual approach was no longer effective HR services not as easily quantifiable, difficult to quantify time savings, enrollment services, error reduction & notification Intangible items are also difficult to measure
7 Need for Process Implementation The paper process was burdensome Web enroll would assist with the process The purpose of the ROI calculation was to demonstrate to the state budget that web enrollment would result in a positive ROI Web enrollment would result in the program becoming more strategic for the future
8 Evaluation Methodology Overhead Cost Reduction HR Teams, IT resources and Production printing and Distribution of paper Risk Migration Program Eligibility Coverage enforced uniformly across entire population Transaction Cost Reduction Employee and HR time Error Reduction Coverage, Payroll Deductions, Billing and Remittance
9 Evaluation Methodology State and Vendor Data use to Formulate Best estimates used when data not available Quantify State Liability Transition time between termination and notification to the FSA vendor to limit state liability
10 Enhancing Website State Liability Turnover % Participants Average Monthly Claim Intangible Items Other items were listed for review that were not qualified in the calculation These items are intangible; therefore, they can not be included in the calculation However these items will further benefit the state in a positive way
11 Intangible Items List of a few Intangible Items Streamline employee data, enrollment, communication & access information No lost forms Ability to view benefit summary online anytime Less data error Ease of implementation in the future Increase of efficiency and effectiveness New interest in the program Preparation for future growth Decrease in paperwork and forms Foreign language capabilities Review of benefits online anytime
12 Evaluation Results Elimination of Paper The cost of paper transaction and the number of transactions per year determine the total savings from the elimination of paper Error Reduction The automated system is self-editing, eliminating data and enrollment errors The number of data and form errors and the cost per error determine the total savings from error reduction Time Reduction Reduction of cycle time for life-event changes, as well as termination
13 Evaluation Results Cont. Administration Cost The vendor no longer receive and manually input forms and negotiations would be made to reduce administration cost in turn saving the program money Effectiveness & Equality Effectively enforces the rules of eligibility and enrollment This ensures that equally while complying with HIPPA (Health Insurance Portability Accountability Act)
14 Communication Strategy NCFlex Utilizes Technology of Web Enrollment HR Would: - Distribute paper enrollment - Check forms for accuracy - Handle illegible forms - Make copies and mail for processing - Deal with forms lost in mail - Deal with forms submitted after deadlines HR Would NOT: - Access to view employee benefits - Access to print out an employee benefit statement - Accurate information - Ease of administration of the online system
15 Communication Strategy Cont. Employees: Vendors: - 24/7 access - Accuracy of the system - Ability to print benefit statements - Elimination of burdensome paper process - Encounter fewer errors - Receive less forms for processing - Accurate information Communication Materials - HR Web Enrollment Administration Manual - Training Classes
16 Resources Vendor Information The number of employees terminate with an FSA balance and the amount of the balance. Number of enrollment or termination to a plan Error rate for processing enrollment Number of employees at a location State Information Turnover rate for the State-2005 Compensation and Benefits Report by OSP Average state employee salary Used to estimate the average HR state salary-2005 Compensation and Benefits report by OSP
17 Resources Cont. Calculated Best Assumptions where hard data was NOT available: Notification of status changes event from agency to vendor Time HR spends on processing a form Enrollment Status Changes Forms with errors to correct
18 Making Change Three Phases introducing Web enrollment Phase 1 Web based enrollment at two Universities (NCSU, UNC Healthcare), Wilson Community College and two agencies (DOA,DOC) Phase 2 Implementation throughout the Sate of North Carolina Phase 3 Centralization of the entire enrollment process through the Flexible Benefits Enrollment Coordination (Aon Hewitt) and interfacing payroll through a single tape.
19 Conclusion Our Web enrollment process was a necessary step to prepare our program for future growth and expansion. Since Implementation this process has been very successful and allowed reduce expenses The elimination of the paper has alleviated some of the burden of the enrollment process as well as facilitate the concern or the environment QUESTIONS..
20 Thank You! Pani Tademeti NCFlex Program Manager State of NC, Office of State Personnel
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