From Overload to Impact: The Power of Data-Driven Point Solutions

As the employee benefits landscape evolves faster than ever before, point solutions – targeted offerings that address specific health or financial needs – have become increasingly popular.

Driven by the need to combat rising healthcare costs, address shifting workforce demographics, and deliver more personalized benefit experiences, the explosion of point solutions poses unique opportunities – and risks – for employers.

Download our full whitepaper, The New Frontier of Employee Benefits: Navigating Point Solution Overload with Data-Driven Strategies, to explore comprehensive best practices for building a data-backed benefits program.

The Risks and Rewards of Point Solutions

Point solutions promise improved health outcomes and cost savings through the delivery of targeted interventions, often via digital platforms, telehealth, or concierge services. But there’s a catch: when they pile up without a unifying strategy, organizations risk point solution overload.

Point solutions work best when they are carefully selected and integrated. Without a strategic approach, employers may face:

• Fragmented employee experiences: Employees don’t know where to go for help, leading to low engagement with valuable benefits
• Administrative headaches: Multiple vendors mean more contracts, more data feeds, and more oversight
• Data silos: Isolated information makes it harder to identify cost drivers or track results
• Missed ROI: Without clear integration, even great solutions may fail to deliver savings or measurable outcomes
• Cultural disconnects: Disparate programs can feel disjointed from the organization’s overall purpose and values

The result of poorly implemented point solutions? Low utilization, wasted resources, and frustrated HR teams.

Why Starting With Data is Essential

At CBIZ, we believe effective point solution strategies start – and end – with data. Claims analyses, workforce demographics, and employee feedback reveal where the most impactful opportunities lie. For example:

• High-cost claimants: Claims analytics reveal 5% of the population generally drives between 65% to 80% of total healthcare spend within employer programs. Identifying the conditions in this cost-containment tier allows for proper focus on potential point-solution implementation.
• Generational patterns: Cancer and musculoskeletal (MSK) conditions top the spend list for Gen X and Baby Boomers, while younger employees may need engagement in preventive care.
• Escalating pharmacy costs: Financial trends show total GLP-1 costs have risen by 81% since 2023, with an additional 58% increase in 2024 alone. GLP-1 drugs accounted for 9% of total pharmacy spend in 2022, doubling to 18% by 2024, while utilization climbed 113% over the same period. These trends underscore the urgency for effective pharmacy management and exploration of alternative purchasing strategies.

Armed with these insights, organizations can select point solutions that address their true cost drivers – not just the latest industry trends.

High-impact Point Solutions

The most effective point solution programs tackle significant spend areas while improving the employee experience.

• Provider and facility quality tools: Access to transparent information empowers members to make informed choices, which can lead to fewer complications, reduced readmissions, and lower overall healthcare spending.
• Claim steerage solutions: These digital or concierge programs use claims data and analytics to proactively steer employees to high-value, lower-cost providers, sites of care, or alternative care modalities.
• Musculoskeletal (MSK) solutions: Virtual physical therapy, surgery alternatives, and imaging network steerage can cut unnecessary procedures and lower costs.
• Cancer care navigation: Tele-oncology and Centers of Excellence referrals help ensure high-quality, cost-effective treatment.
• Diabetes management: Remote monitoring, personalized coaching, and GLP-1 oversight improve health outcomes and adherence.

How to Avoid Point Solutions Overload

The key to avoiding fragmentation lies in taking a strategic, integrated approach to point solutions. Start with your own data, pinpointing needs through claims analytics, utilization patterns, and employee input. As you implement programs, ensure they reflect your organizational values and align with your company culture.

Integrate systems and communication to help employees easily navigate offerings and create opportunities for vendors to share meaningful data. Along the way, align rewards and offerings to benefit both employees and your bottom line.

Measuring What Matters

Success requires consistent measurement. That means tracking both ROI – cost savings from avoided procedures, reduced pharmacy spend, or lower utilization and VOI – cultural value reflected in improved retention, productivity, and engagement. Consider monitoring:

• Utilization rates
• Claims and trend reductions
• Engagement and satisfaction surveys
• Retention and absenteeism rates
• Clinical outcomes, such as A1C improvement or surgery avoidance

Equally important: holding vendors accountable with clear KPIs and quarterly reviews.

Dive Deeper into Point Solutions

Point solutions can deliver meaningful impact, but only if they’re strategically selected and implemented. Without a data-driven approach, organizations risk ending up with an expensive patchwork of underused programs. With it, they can design a benefits portfolio that improves employee wellbeing, strengthens culture, and drives sustainable savings.

Download our full whitepaper, The New Frontier of Employee Benefits: Navigating Point Solution Overload with Data-Driven Strategies, to explore comprehensive best practices for building a data-backed benefits program.