This HR tech could help employees make better enrollment decisions

Employees need more help selecting health benefits — and HR tech could offer a potential solution.

This week, consumer directed healthcare company Alegeus teamed up with the software provider Picwell to offer an AI-driven decision support tool to employers. Employees using Alegeus’ platform will now be able to use Picwell’s software to help select a health plan, says Brian Colburn, senior vice president of corporate development and strategy at Alegeus. This could be particularly valuable for workers when selecting offerings such as health savings accounts or flexible spending accounts, he adds.

“Research is clear that consumers still don’t understand the value of tax-advantaged healthcare benefit accounts like FSAs, HRAs and HSAs,” he says.

See also:Alegeus releases AI-enabled Smart HSA

The Picwell decision tool prompts employees to answer a series of questions about their health. Responses are compared to medical claims data and then predictive analytics reviews current and future healthcare costs as well as employee preferences, to suggest a best fit plan for a specific worker.

“[Employees] leave open enrollment empowered by the fact that they have made the smartest spending and saving decisions based on their unique healthcare needs,” Colburn says.

Data shows that workers struggle to understand their health benefits and often spend little time researching them. But companies may not be helping — 30% of employers did not help their employees understand or make benefit decisions ahead of open enrollment, a survey from Alegeus found. Plus, nearly half of consumers said their experience during open enrollment was negative.

Some tech companies have stepped up to fill this void. For example, Securian’s Benefit Scout helps employees select voluntary insurance. The platform uses artificial intelligence to analyze lifestyle and demographic information, such as an employee’s age and whether or not they have children. Based on the responses, Benefit Scout will suggest a plan and coverage amount.

Alegeus also offers other decision support tools. The company has an AI-enabled Smart HSA mobile app that suggests ways employees can better use their healthcare dollars. Employees can use the mobile app to view their account balance and receive AI-based recommendations for how to save money on medical procedures, prescription drugs and chronic condition management.

See also: This software may predict if any employee is about to get sick

Colburn says that employees could use an extra boost, particularly when enrolling in tax-advantage accounts. Alegeus found that half of consumers who chose a high-deductible health plan failed to enroll in an HSA, he says. As a result, these employees may end up overpaying for healthcare. Technology, however, could help workers make smarter choices, he adds.

“The Picwell tool gives employees the confidence and guided experience they need to be comfortable with their decisions,” Colburn says.