Healtheon announces expanded benefits administration services; Healtheon service delivers significant cost savings via employee self-service and connectivity to carriers

Business Wire, May 27, 1997

PALO ALTO, Calif.--(BW HealthWire)--May 27, 1997--Healtheon Corporation, a leader in simplifying health care and benefits administration via the Internet, today announced it is delivering an expanded suite of services.

The Healtheon Service simplifies the tasks of benefits administration and significantly reduces the costs for employers and benefits carriers.

This expanded service includes: a rich, multimedia application for "round-the-clock" employee self service and decision support; easy employee access to the application through integrated Interactive Voice Response (IVR) and Internet browser interfaces; a flexible easy-to-use suite of customization and administration tools for HR managers to administer employee benefits; a full range of systems integration services for synchronization with HR and payroll systems; and managed data distribution services for all of an employer's benefits carriers.

The Healtheon Service delivers the best of both an "insourced" and "outsourced" benefits administration solution for employers. Healtheon enables HR managers to off-load the capital investment in hardware, software and training personnel required to implement an "insourced" employee self-service benefits administration system. However, unlike traditional HR outsourcing alternatives, Healtheon allows HR managers unlimited, real-time access to employee data and the ability to generate reports cost-effectively whenever they wish.

"Unlike expensive, complex and hard to modify proprietary PC-based or client/server applications, Healtheon uses the Internet as a low-cost, robust, open platform to link, employees, employers and benefit carriers," said Jim Clark, chairman and founder of Healtheon and chairman of Netscape Communications. "In addition, Healtheon delivers a service-based solution, rather than a product, in order to meet our customers' requirements for a cost-effective, scaleable, flexible solution that addresses their business needs for more customized, robust data access, data processing and distribution solutions."

New Service Benefits The new Healtheon Service includes:

-- Healtheon Customizer(TM) and Healtheon Administrator(TM). These easy-to-use, point-and-click applications allow HR administrators to easily customize the Healtheon service to conform to the specific benefit requirements of their organizations and their individual employees. HR managers no longer have to rely on programmers to set up and administer their benefits programs or define eligibility rules and costs. In addition, these applications enable HR managers to access employee data, generate reports and automate business workflows.

-- Interactive Voice Response (IVR). This complementary IVR capability ensures that employees without access to the Internet can use the service via a telephone call, which is vital to meeting their real world situations. For example, employees can make changes to their benefits plans from their computers at work, and later call by phone into the system and immediately verify the changes have been made prior to a doctor visit.

-- The Healtheon Integration Station for HRIS integration. The service's new capability enables data synchronization among multiple applications including the employer's HRIS system (such as PeopleSoft and SAP), the benefit carrier's membership systems database and the Healtheon Service. By integrating the Healtheon Service with their existing HR database, employers can maintain and extend their investments in their legacy systems.

Partners Key to Total Solution

A key part of the expanded benefits administration service is Healtheon's Preferred Partners program. This nationwide network of benefit consultants and system integrators, work in partnership with Healtheon to provide such services as COBRA administration, benefit plan set-up/customization and data synchronization with employers' HRIS systems. The only technology investment employers' will have to make is a non-dedicated PC running Windows NT. Employees can access the system through a common Internet browser or by telephone.

Value for Benefit Carriers

For benefit carriers, the Healtheon Service continues to provide a scaleable multi-employer solution which connects benefits carriers directly with their individual members and their employer customers' legacy systems (i.e., payroll and HRIS).

The Healtheon Service increases the accuracy and speed of transmitting, administering and managing enrollment, eligibility and other employee data. Healtheon also provides two-way connectivity and secure messaging services between carriers and their members, which enables carriers to offer a range of customer service features, from targeted education to electronic replies to frequently asked questions about eligibility and claims. This allows carriers to provide superior customer service to their members and employer accounts.

ROI Model developed by Independent Auditor

Ernst and Young, LLP., an independent auditor, has developed a model for employers and benefits carriers to demonstrate the cost-effectiveness of the Healtheon Service based upon their own analysis. "Industry experts agree that the exchange of information between benefits carriers, employers and employees is frustratingly inefficient," said Robert Skok, principal of Ernst and Young's health care consulting organization.