The Benefits of Composable Health Insurance Software

Health insurance plans in the past purchased large, complex software solutions built to address multiple health insurer needs. Whether health plans constructed those solutions internally or purchased commercial-off-the-shelf (COTS) solutions, maintaining them required large server farms, costly implementations, and expensive labor.

Those systems are being replaced today by composable software solutions. Here’s a look at the benefits of composable health insurance software:

What is Composable Health Insurance Software?

At its core, composability enables insurers to create a new, customized solution from multiple sources. The result is a tightly integrated business solution with freely interchangeable parts. These solutions can be composed of internal applications and commercially available software. Integrations help data flow between the applications to create a cohesive user experience. Health insurers can replace composable solutions easier than all-in-one platforms.

Composable Software Improves Efficiency

Using composable software components enables health insurance businesses to create tailored solutions that meet their unique needs. This can increase efficiency, as software can be developed and deployed quickly and with fewer resources.

That improved deployment speed means health plans spend less time on implementations and experience the benefits and ROI of software faster. Insurers can leverage integration technologies like single sign-on (SSO) to make it easier for users to access different software systems. 

For example, many health plans use SSO to connect their member portal with a billing portal. As a result, members do not need to maintain separate login credentials for their member portal and a payment portal, streamlining access to billing data while offering best-in-class member portal and billing portal features.

Composable Health Insurance Software Leads to Greater Agility

The health insurance marketplace is constantly shifting. Because the government heavily regulates many markets health insurers serve, government oversight leads to changing requirements. Whether that’s Medicare Advantage risk adjustment data validations or prior authorization rules, health plans often face regulations that require software to successfully comply.  

Composable software allows health insurance businesses to quickly adapt to changing market conditions, customer needs, and regulatory requirements. This software design enables health plans to iterate rapidly. If regulations require new software, a composable design makes it easier to plug and play that software into an existing software stack. Composable solutions help health insurers remain competitive and respond more effectively to a constantly changing regulatory environment.

Composable Software Improves the Customer Experience

With the growth of Affordable Care Act exchanges and increased competition in Medicare Advantage markets, more insurers are turning to the member experience as a competitive differentiator. 

Composable software can help make it easier for health insurance businesses to create more personalized, responsive customer experiences. For example, by integrating customer data across different systems, health plans can provide more targeted and relevant services to their customers. Insurers can tie claims data into a member experience platform to provide an intelligent, personalized experience that’s difficult to achieve with less composable solutions.

Plus, by creating a solution from composable solutions – like a dedicated premium billing platform or a best-in-class claims administration solution – you can select solutions that place a premium on the member experience. For example, our billing solution includes configurable invoices and member communications like delinquency emails and letters and a personalized payment portal. Selecting composable solutions enables health plans to choose best-in-class solutions and focus on solutions that improve the member experience.

Composable Software Delivers Cost Savings

Composable software can help health insurance businesses reduce costs by eliminating the need to build and maintain custom software from scratch. Instead, businesses can assemble pre-built components to create new solutions, which can be less expensive and more scalable over time.

Many composable solutions have migrated to the cloud, offering cost savings over on-premise solutions. As a result, those cloud solutions can pass savings to their customers, often offsetting bundled pricing packages offered by well-known enterprise software solutions that heavily discount underperforming modules.

Software composability can help health insurance businesses stay competitive, improve customer satisfaction, and achieve greater efficiency and cost savings.

Certifi’s health insurance premium billing and payment solutions help healthcare payers improve member engagement while reducing administrative costs.

Download a Guide to Premium Billing Software for Health Insurers

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