While each program can work on an individual portion of the total integrated package, the main database can be programmed to analyze each individual program's data, while not interfering with ongoing work. EDI has many industry observers believing it will effectively reinvent how plans are administered and delivered in the future. Indeed, there are myriad applications for EDI in the benefits marketplace. This ease of speed is being made possible with electronic information technology. The employer needs quick access to its historical loss data, as well as current trends, in order to benchmark performance and make the necessary adjustments in its risk management program when things get out of whack.
Immediate feedback is critical.
A TPA with access to industry-wide data is also critical. To this end, a current challenge facing all participants in the benefits arena is the ability to obtain systems that can talk to one another. As a result, interconnectivity is fast becoming a new buzz term as we move into the 21st century. TPAs are also being given a capabilities boost with technology for litigation cost containment. Capitated rates are the way to go, and software technology helps make it happen.