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Scott Evans benefitexpress
The Alphabet Soup of Carrier Integration:
EDI vs. API
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Bruce ShutanContributing Editor
Employee Benefits News/Advisor
Moderator
Scott EvansChief Product Officer
benefitexpress
Presenter
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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
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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?
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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
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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
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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
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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
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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
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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
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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?
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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?
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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
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QUESTIONS?