Webinar: Proactive Cost Avoidance and MLR Strategies for Medicare Advantage

How Will the 2025 Administration Reshape Medicare Advantage?

Hosted by the Association for Community Affiliated Plans (ACAP), the webinar, “Preparing for the 2025 Administration Shift: Proactive Cost Avoidance and MLR Strategies for Your Medicare Advantage Business,” will explore how upcoming policy changes could drive Medicare Advantage growth, including increased reimbursement rates and expanded support for Dual Eligible Special Needs Plans (D-SNPs).

Join HealthAxis and COPE Health Solutions 2-3 PM ET on Thursday, December 12th, as we share actionable insights to help health plans adapt their strategies and operations to effectively manage Total Cost of Care (TOC), quality, clinical documentation, and Medical Loss Ratio (MLR) in this shifting environment.

What You’ll Learn:
✔ How anticipated 2025 policy changes may impact Medicare Advantage and D-SNPs.
✔ Data-driven strategies for identifying cost-saving opportunities and improving MLR.
✔ Operational workflows that support scalable growth while optimizing outcomes.
✔ Strengthening care coordination and population health to reduce high-cost utilization.

This webinar is free and open to all—no ACAP membership is required. Seats are limited—secure your place now to gain the insights and tools your Medicare Advantage business needs to thrive in 2025.

Sign-Up Now

 

Featured Speakers:

Nick Hutchins
Nick Hutchins
Chief Growth Officer
HealthAxis
John Wallace
John Wallace
Principal
COPE Health Solutions

The Future of Health Plan Administration: How AI and Automation Are Paving the Way for Sustainable Growth

In today’s rapidly transforming healthcare landscape, health plans face mounting pressures to balance operational demands, cost efficiency, and member satisfaction. While artificial intelligence (AI) and automation offer promising solutions, many payers remain hesitant and uncertain about their practical applications and benefits. However, specific technologies like conversational AI and robotic process automation (RPA) are proving their value, creating a foundation for smarter decision-making, significant cost reductions, and deeper member engagement—all without compromising care quality.

In this blog, I’ll explore:

  • How Conversational AI is enhancing member support and improving responsiveness.
  • The transformative impact of RPA on healthcare administrative processes.
  • How these technologies enable payers to reduce costs and optimize resources.
  • Insights into how HealthAxis uses these innovations to drive results for our clients.

Enhancing Member Support with Conversational AI and AI-Driven Voice Technology

Member support is one of the most resource-intensive areas for health plans. High call volumes and the demand for personalized service strain call centers, driving up costs and reducing efficiency. Conversational AI, powered by advanced Natural Language Processing (NLP), addresses these challenges by automating routine inquiries with empathetic, natural-sounding virtual agents. This technology delivers real-time, human-like interactions while ensuring seamless functionality.

At HealthAxis, we leverage AI-driven voice technology built on voice large language model (LLM) infrastructure purpose-built for contact centers. These systems greet members with an empathetic, conversational tone while eliminating latency and orchestration issues to ensure immediate responses. They are designed to handle tasks such as checking claim statuses, verifying coverage details, and scheduling appointments quickly and accurately. For example, these systems can process member requests in under 30 seconds, significantly reducing the need for expensive human intervention.

Virtual agents integrated with claims systems streamline interactions, minimizing response times and improving member satisfaction. Gartner predicts that by 2026, Conversational AI will reduce contact center agent labor costs by $80 billion.1 Additionally, Deloitte reports that organizations using AI in customer service have seen a 33% improvement in response times and a 25% boost in member satisfaction.2

By offloading repetitive tasks to conversational AI, health plans can reduce costs, enhance member satisfaction, and allow support teams to focus on complex, high-value interactions that build trust and loyalty.

Streamlining Administrative Processes with Robotic Process Automation

Administrative processes are another significant cost driver for health plans. From claims adjudication to eligibility verification, these repetitive, rules-based tasks consume valuable time and resources. RPA automates these workflows, reducing manual errors and processing times while lowering operational expenses.

At HealthAxis, we leverage RPA to help clients optimize costs and streamline administrative processes. For example, automating claims processing allows payers to reduce manual touchpoints and achieve near-perfect accuracy. This improves provider relationships by ensuring faster reimbursements and reduces overhead associated with administrative labor.

Studies indicate that RPA can lower administrative costs by up to 30% while processing claims and other tasks 50-70% faster than traditional methods.3 By integrating RPA, payers save on labor costs and free up resources to invest in member-centric initiatives, creating a pathway to long-term sustainability.

Driving Sustainable Growth Through Cost Optimization

Cost reduction alone isn’t the end goal—it’s about reinvesting those savings into areas that drive growth and improve member satisfaction. Together, Conversational AI and RPA enable payers to achieve this balance by:

  • Streamlining operations to reduce inefficiencies and manual errors.
  • Improving scalability to manage growing member bases without proportional cost increases.
  • Enhancing member experiences through personalized, responsive service.

Payers can scale sustainably while staying competitive in an evolving market by focusing on operational efficiency and member engagement.

Shaping the Future of Health Plan Administration

As the healthcare industry evolves, embracing technologies like Conversational AI and RPA is no longer optional—it’s essential for payers looking to remain competitive and deliver meaningful results. These innovations enable health plans to reduce operational costs, enhance efficiency, and improve member satisfaction while creating a scalable framework for long-term success.

The key lies in thoughtful implementation that balances cutting-edge technology with the human touch, ensuring that growth does not come at the expense of care quality or personalization. By effectively leveraging these tools, payers can address today’s challenges while positioning themselves for a more sustainable and agile future.

At HealthAxis, we empower health plans to navigate this transformation with purpose-built, forward-thinking solutions tailored to their unique needs. Connect with our experts today to learn how we can help your organization thrive in an increasingly complex healthcare landscape.

Author:

Suraya Yahaya

Suraya Yahaya
President and Chief Executive Officer

Sources:

  1. Conversational AI: Improved Service at Lower Cost, RT Insights
  2. Conversational AI Statistics and Market Outlook 2023, Hubtype
  3. The Power Of Robotic Process Automation (RPA) In Healthcare: Exploring Use Cases, Benefits, And Challenges, Streamline Health Solutions

2024 Healthcare Policy Changes: What They Mean for Health Plans in 2025

As the year comes to a close, healthcare payers face a landscape marked by significant regulatory shifts and evolving compliance demands. New mandates from CMS, adjustments to Medicare Part D, enhanced HIPAA compliance standards, and a push toward value-based care models will all impact how payers operate, interact with providers, and serve members. Staying ahead of these changes is crucial—not only to ensure compliance but also to strengthen operations, improve member experience, and achieve strategic objectives in a rapidly evolving landscape.

In this blog, I’ll summarize the key regulatory shifts from 2024 and what they mean for healthcare payers moving forward.

1. CMS Updates and Interoperability Requirements

CMS Updates and Interoperability Requirements

The Centers for Medicare & Medicaid Services (CMS) has made significant strides this year, with updates to its interoperability mandates. Notably, the CMS Interoperability & Prior Authorization Final Rule sets new expectations for streamlining data exchange and improving the prior authorization process. Healthcare payers will need to enhance their technology infrastructure to comply with requirements that promote seamless sharing of patient data with in-network providers by January 2027, with several milestones taking effect sooner.1

For payers, this means investing in advanced systems capable of supporting real-time data sharing. Compliance with these updates will not only minimize administrative burdens but also help facilitate improved care coordination for beneficiaries.

2. Medicare Part D and Prescription Payment Plan Adjustments

Medicare Part D and Prescription Payment Plan Adjustments

Changes to the Medicare Prescription Payment Plan have also been finalized, impacting how prescription drug costs are handled. For those managing Medicare Part D plans, adjustments to out-of-pocket caps and cost-sharing structures will require attention. The goal of these changes is to provide beneficiaries with greater transparency and affordability when managing their prescription needs.

Stakeholders should be prepared to revise benefit designs and communicate these changes effectively to members to ensure a seamless implementation. Proactive communication and robust training programs for healthcare providers and pharmacies will also help maintain alignment and clarity.

3. HIPAA Compliance Enhancements

HIPAA Compliance Enhancements

This year has seen heightened emphasis on strengthening data privacy and security practices under Health Insurance Portability and Accountability Act (HIPAA).2 New guidelines have clarified expectations around the secure exchange of electronic health information (EHI). Compliance officers and consultants will need to focus on ensuring their data-sharing practices align with the updated standards to avoid penalties.

Particularly, payers working within Medicare Advantage or Medicaid need to revisit their privacy policies and conduct internal audits to ensure all departments are fully compliant. With the increasing push towards digital healthcare, staying vigilant about cybersecurity remains a top priority.

4. Changes to Value-Based Payment Models

Changes to Value-Based Payment Models

CMS continues to advance value-based payment models, shifting the focus from volume to value by prioritizing health outcomes and patient experience. These models reward healthcare payers and providers that implement effective care coordination and population health strategies. For example, the Hospital Value-Based Purchasing Program incentivizes hospitals to improve the quality and efficiency of care.3 Additionally, the Medicare Advantage Value-Based Insurance Design Model emphasizes person-centered innovations, such as offering targeted benefits for chronic disease management.4 The Expanded Home Health Value-Based Purchasing Model further supports providers in delivering high-quality care while controlling costs.5

Healthcare payers should continue aligning their operations with value-based care principles by investing in advanced analytics, fostering provider partnerships, and driving initiatives to enhance member outcomes.

Looking Ahead to 2025

The changes from 2024 set the stage for a transformative 2025 in healthcare. Healthcare payers should focus on strengthening partnerships with providers, enhancing compliance and data privacy practices, and preparing their organizations for a continued shift toward value-driven care.

Proactive preparation is key—from enhancing IT systems to conducting training for staff and partners. By anticipating and adapting to these changes, healthcare payers can position themselves to navigate the evolving regulatory environment effectively while continuing to serve their members with quality and care.

The year-end regulatory updates are a reminder of the rapid evolution of the healthcare industry. As healthcare payers, the best approach is to stay informed, stay adaptable, and commit to continuous improvement. By doing so, you can ensure compliance, support your beneficiaries, and thrive in the year ahead.

At HealthAxis, compliance is embedded into our technology and services, ensuring health plans can operate with confidence in a complex regulatory landscape. Schedule a call with our experts to learn how we can help fortify your organization against risks and ensure continuous alignment with healthcare regulations.

Author:

Kelly Thao - Writer

Kelly Thao

Sr. Compliance Analyst

HealthAxis

 

Sources:
1. Interoperability and Prior Authorization Final Rule (CMS-0057-F), CMS
2. Fact Sheet 42 CFR Part 2 Final Rule, U.S. Department of Health and Human Services
3. Hospital Value-Based Purchasing Program, CMS
4. Medicare Advantage Value-Based Insurance Design Model, CMS
5. Expanded Home Health Value-Based Purchasing Model, CMS

Driving Efficiency with AI and Automation: Insights from HealthAxis CTO Chris House on Healthcare IT Today

Artificial intelligence (AI) and automation are transforming healthcare operations, and HealthAxis is at the forefront of this innovation.

In a recent feature with Healthcare IT Today, our CTO, Chris House, shared insights into how AI and Robotic Process Automation (RPA) are driving measurable improvements in healthcare administration. From reducing call handle times to streamlining claims workflows, Chris detailed the real-world applications of these technologies and their impact on efficiency, productivity, and service quality.

The discussion also covered how AI and RPA free up staff from repetitive tasks, enabling them to focus on more complex cases and improving overall service. Chris shared actionable strategies for training teams to adopt these tools effectively and offered his perspective on the future of AI and automation in healthcare.

Watch the full video to explore how AI and automation are driving measurable improvements in healthcare administration and empowering staff across the ecosystem.

At HealthAxis, we are empowering health plans to navigate this transformation with purpose-built solutions tailored to their unique needs. Connect with our experts today to learn how we can help your organization thrive in an increasingly complex healthcare landscape.

HealthAxis InFocus: Health Plan Compliance – Six Key Areas to Prioritize in 2025

Health plans face increasingly complex compliance demands. In this HealthAxis InFocus video, Compliance Officer Milonda Mitchell delves into the six priority areas health plans should focus on to reduce risk and excel in 2025.

Key Compliance Priorities Covered in the Video:

  • Medicare and Medicaid Program Integrity – Steps to prevent fraud and improve quality.
  • Affordable Care Act (ACA) and Commercial Plan Compliance – Navigating the No Surprises Act and billing transparency.
  • Privacy, Cybersecurity, and Interoperability – Ensuring secure data access and meeting HIPAA standards.
  • Health Equity – Addressing social determinants and promoting equitable care.
  • Operational Transparency and Member Communication – Providing clear, timely information to members.
  • CY 2025 Technical Changes – Preparing for upcoming shifts in data reporting and risk adjustment.

Watch the video below for a closer look at each area and find out how health plans can stay ahead of regulatory shifts while building trust with members.

At HealthAxis, compliance is embedded into our technology and services, ensuring health plans can operate with confidence in a complex regulatory landscape. Schedule a call with our experts to learn how we can help fortify your organization against risks and ensure continuous alignment with healthcare regulations.

Top Technology Investments for U.S. Healthcare Payers in 2025: Part 2

In Part 1 of this two-part series, we examined the top five technology areas receiving increased investment from healthcare payers in 2025, according to the 2025 Gartner CIO and Technology Executive Survey. Now, we turn to the next set of high-priority investments aimed at further optimizing payer operations.

Based on Gartner’s survey of healthcare CIOs, Part 2 will cover the following key areas of increasing investment:

    • Data science and machine learning platforms (31%)
    • Analytics tools for payer use cases (27%)
    • Provider data or network management applications (23%)
    • Data management and enrichment tools (20%)
    • Payment integrity tools (18%)
    • Value-based payment and analytics tools (18%)

Each area presents significant opportunities for payers to enhance decision-making, improve data quality, and drive cost savings. Let’s explore these investments and their impact on the healthcare payer industry.

Data Science and Machine Learning (ML) Platforms

Data science and machine learning platforms are becoming a strategic pillar for healthcare payers. These technologies enable payers to build predictive models, gain deeper insights into patient populations, and automate decision-making processes, improving efficiency across multiple operational areas.

Machine learning is particularly valuable for predicting high-risk patients, optimizing care pathways, and detecting fraud. According to Accenture, AI and ML in healthcare could save the U.S. economy $150 billion annually by 2026.1 These platforms enable payers to enhance the accuracy of predictive analytics, improving outcomes while driving down operational costs.

Why This Matters: Payers that leverage data science and machine learning gain a competitive edge through more accurate forecasting, better decision-making, and automation of complex processes—leading to both cost savings and improved patient outcomes.

Analytics Tools for Payer Use Cases

Analytics Advanced analytics tools are becoming increasingly vital for healthcare payers seeking to optimize operations, reduce costs, and improve patient outcomes. These tools allow payers to analyze claims data, perform member segmentation, and conduct financial forecasting, all critical for managing risk and controlling expenditures.

By leveraging real-time analytics, payers can gain insights into trends in member behavior, optimize provider networks, and monitor key performance
indicators to drive organizational performance. According to Clarify Health, business intelligence (BI) tools are key for making data actionable, allowing healthcare organizations to strategically manage revenue cycle operations, reduce claim denials, and enhance patient care.2 This integration of analytics supports better decision-making and ensures payers can stay competitive in a rapidly changing environment.

Why This Matters: Analytics tools equip payers with the actionable insights necessary to streamline operations, identify cost-saving opportunities, and make data-driven decisions that directly impact their bottom line. These tools are essential for navigating the complexities of modern healthcare.

Provider Data or Network Management Applications

Managing provider networks efficiently remains a major challenge for healthcare payers, largely due to complex and often fragmented data management processes. Many payers rely heavily on manual work to maintain accurate, up-to-date provider directories, manage contracts, and ensure compliance with regulatory standards. This manual approach can lead to data inconsistencies and delays, impacting overall network performance.

Improvements in provider data management streamline these processes and enable payers to feed accurate provider data directly into their payment integrity solutions. This integration helps prevent errors and reduces inaccurate payments, aligning with payer goals to enhance data integrity and cost control. By investing in more sophisticated network management applications, payers can improve data accuracy and simplify workflows, building a foundation for more effective provider collaboration and operational efficiency.

Why This Matters: Streamlined provider data management is critical for healthcare payers to reduce manual work and improve data accuracy. These applications not only support regulatory compliance and provider collaboration but also enhance payment integrity by feeding clean, accurate data into downstream systems, ensuring more precise claims processing and cost savings.

Data Management and Enrichment Tools

Data is at the core of payer operations, but ensuring data quality remains a challenge. Data management and enrichment tools are essential for cleaning and organizing payer data to ensure accuracy.

These tools enhance data quality by reducing duplicates, improving interoperability, and enriching member records. Poor data quality remains a widespread issue across healthcare and technology sectors, leading to inefficiencies that stem from data errors, duplicates, and incomplete records. These data challenges drive up operational costs and hinder effective decision-making. For healthcare payers, verifying data accuracy and streamlining data management is critical to reducing fraud, improving claims processing, and enhancing overall operational efficiency.

Why This Matters: High-quality data is the foundation of successful payer strategies. By investing in data management and enrichment tools, payers can increase operational efficiency, reduce errors, and enable better decision-making that drives financial performance.

Payment Integrity Tools

As healthcare payers seek to reduce fraud, waste, and abuse in claims processing, payment integrity tools have become essential. These tools utilize advanced anomaly detection and machine learning algorithms to identify unusual patterns in claims data, allowing payers to prevent improper payments before they occur. Recent advancements in provider coding practices and revenue cycle management (RCM) have led to higher claim severity, adding to the complexity and making accurate detection even more critical.

The National Health Care Anti-Fraud Association (NHCAA) estimates that healthcare fraud costs the U.S. system more than $68 billion annually, underscoring the importance of robust payment integrity solutions.3

To ensure consistency and accuracy in payment integrity, payers are increasingly adopting an enterprise-wide approach, aligning processes and thresholds across different teams. By standardizing these elements, payers can establish a cohesive strategy that enhances fraud detection, improves claim accuracy, and mitigates financial losses.

Why This Matters: An enterprise approach to payment integrity, combined with advanced anomaly detection capabilities, empowers healthcare payers to address the complexities of today’s claims environment. Standardizing payment integrity processes across teams not only reduces financial losses due to fraud but also ensures more accurate and efficient claims processing, providing a stronger, organization-wide defense against fraud, waste, and abuse.

Value-Based Payment and Analytics Tools

As value-based care (VBC) models gain traction, healthcare payers are increasingly investing in value-based payment (VBP) and analytics tools. These tools are designed to align payers and providers around quality metrics, ensuring reimbursements are tied to patient outcomes rather than service volume. However, realizing the full ROI from VBC tools requires prioritizing strong, collaborative relationships between payers and providers. Many providers lack the tools needed to gain actionable insights, making it essential for payers to support these partnerships and bridge technology gaps to foster a people-centered approach.

With relationships as the foundation, streamlined processes come next, providing both payers and providers with workflows that make it easier to monitor performance and manage value-based contracts. Finally, robust data completes the framework, enabling real-time insights and accurate evaluations that support continuous improvement and financial success in VBC models.

Why This Matters: To achieve meaningful ROI from VBC tools, healthcare payers must invest in the pillars of People, Process, and Data. By building strong provider relationships, establishing effective workflows, and leveraging accurate data, payers can support their provider partners in delivering better outcomes, thereby driving success in a value-based healthcare environment.

The Path Forward for Healthcare Payers in 2025

As healthcare payers continue to adapt to an evolving landscape, their investment priorities reflect a growing emphasis on data-driven decision-making, payment integrity, and value-based care. Technologies like machine learning platforms, provider network management applications, and payment integrity tools are becoming essential to building more efficient, cost-effective operations while improving care outcomes.

By strategically investing in these areas, payers not only ensure compliance with regulatory demands but also position themselves competitively in an increasingly complex healthcare market. As healthcare continues to evolve, staying ahead of these technological advancements will be crucial for payers aiming to scale efficiently and deliver better outcomes for members.

Ultimately, the key to success lies in leveraging these technologies to drive operational efficiency while maintaining a strong focus on improving patient care. This balanced approach will enable healthcare payers to thrive amid the challenges and opportunities that 2025 and beyond will present.

With HealthAxis’ forward-thinking technology and expert team by your side, you can confidently navigate this evolving landscape. Schedule a discovery call today to explore how we can help you achieve success in 2025 and beyond.

Author:

Eric Strikowski

Eric Strikowski
Chief Innovation Officer

Sources:

  1. AI: Healthcare’s New Nervous System, Accenture
  2. Why Healthcare Organizations Need Business Intelligence Tools Today, Clarify
  3. FWA Is Increasing. Healthcare Costs Are Spiraling, 4L Data Intelligence

Top Technology Investments for U.S. Healthcare Payers in 2025: Part 1

The healthcare payer industry is at a pivotal moment. As operational costs rise, consumer expectations evolve, and technology rapidly advances, payers are compelled to reassess their technology priorities to stay competitive and ensure they can scale efficiently while addressing complex regulatory and operational demands. According to the 2025 Gartner CIO and Technology Executive Survey, several key areas are emerging as top investment priorities, all aimed at boosting efficiency, enhancing patient outcomes, and optimizing operations.

In this two-part blog series, we’ll explore the top technology investments healthcare payers are focusing on in 2025. Based on Gartner’s survey of healthcare CIOs, the first part will dive into the top five areas of increased funding, which include:

  • Consumer Experience Capabilities (66%)
  • Core Admin Systems (50%)
  • Interoperability Technologies (36%)
  • Care Management Solutions (36%)
  • Sales Enablement Applications (34%)

Each percentage reflects the proportion of healthcare payers that, according to Gartner’s research, are increasing investments in these areas.

Consumer Experience Capabilities

The drive to enhance consumer experience among healthcare payers stems from a need to influence member behavior, which hinges on building trust—something many payers have struggled to achieve. Unlike other sectors, where consumers can exercise choice, insurance is often non-optional, leaving payers with an added responsibility to cultivate loyalty in a constrained market. According to the Edelman Trust Barometer, trust is a critical factor for long-term brand success, especially in industries like healthcare, where skepticism can significantly impact engagement.1

While consumer expectations for personalized, tech-driven service are growing, many payers are grappling with how to meet these demands effectively. Heavy investments in technology for omnichannel engagement and AI-driven personalization indicate a push toward better consumer experiences, but many of these efforts have yet to translate into tangible gains in trust or loyalty. This illustrates the importance of strategic investments in consumer experience platforms that do more than streamline interactions—they must address deeper relational gaps to foster long-term member retention.

Why This Matters: By investing in cloud-native architectures and AI-driven personalization algorithms, healthcare payers can better align with member expectations, fostering engagement and loyalty in a market where consumer choice is limited. This approach not only enhances satisfaction but also supports long-term retention by addressing relational gaps, building trust, and creating a foundation for a competitive edge in today’s complex healthcare landscape.

Core Admin Processing Systems

Modernizing core administrative systems is another top priority for healthcare payers. A major challenge is the steady retirement of talent skilled in maintaining legacy infrastructure, which, combined with a growing demand for computing power to support AI-driven projects, is driving payers toward cloud-based, scalable solutions. These platforms streamline essential processes like claims management, enrollment, and payment processing while also enabling faster updates and integrations with third-party services.

According to a report by MarketsandMarkets, the global healthcare cloud computing market is estimated to be worth $53.8 billion in 2024, with a projected growth to $120.6 billion by 2029, representing a Compound Annual Growth Rate (CAGR) of 17.5%.2 This shift reflects the broader industry trend of moving away from on-premise infrastructure to more flexible, API-driven systems that allow for greater agility and cost savings.

Why This Matters: Cloud-based platforms allow payers to scale operations seamlessly, reduce infrastructure costs, and future-proof their systems against evolving regulatory requirements. The flexibility of these platforms also makes it easier to integrate new technologies, ensuring long-term operational efficiency.

Interoperability Technologies

As healthcare payers navigate growing regulatory demands, interoperability has become essential. Compliance with standards like FHIR® (Fast Healthcare Interoperability Resources) is now mandated, encouraging payers to adopt solutions that enable accurate, real-time data exchange. While the healthcare industry has yet to reach consensus on a universal data-sharing approach, payers continue investing in a variety of technologies to meet current demands. In the meantime, FHIR®-readiness facilitates smoother data flow with compliant providers, helping payers reduce manual processing and operational bottlenecks.

According to the 2023 CAQH Index, healthcare plans could save $18.3 billion annually by automating transactions like eligibility checks and prior authorizations.3 While compliance remains the primary driver, these savings illustrate an added benefit of interoperability investments. FHIR®’s standardized data structure further establishes a foundation for scalable, future-ready infrastructures.

Why This Matters: Investing in FHIR® and interoperability technologies is essential for healthcare payers to meet regulatory mandates and maintain compliance across a range of platforms. While potential cost savings offer additional value, these technologies support streamlined data exchange, foster stronger provider collaboration, and ensure payers stay aligned with evolving industry standards.

Care Management

With rising healthcare costs and increasing medical loss ratios (MLRs) placing pressure on healthcare payers, the need for advanced care management solutions has become critical. These systems use data-driven approaches to identify high-risk members, coordinate proactive interventions, and manage chronic diseases—ultimately reducing the cost of care and improving patient outcomes. According to a recent analysis by the Kaiser Family Foundation, MLRs have remained high across the individual, group, and Medicare Advantage markets, underscoring the urgency for payers to contain costs through effective care management.4

From a technical perspective, modern care management platforms integrate real-time analytics and predictive modeling tools, allowing payers to intervene early, avoid costly complications, and personalize care. This approach aligns with broader payer goals of implementing scalable solutions that not only drive down costs but also improve the overall quality of care for members.

Why This Matters: Investing in advanced care management platforms allows healthcare payers to manage rising costs effectively while enhancing the patient experience. By leveraging predictive analytics and personalized care pathways, payers can mitigate high-cost events, align with evolving care models, and remain competitive in an increasingly cost-sensitive market.

Sales Enablement Applications

To remain competitive, healthcare payers are increasingly investing in sales enablement tools that align marketing and sales efforts, streamline member acquisition processes, and optimize retention strategies. These tools, especially when integrated with cloud-based platforms, provide real-time insights and facilitate team collaboration, offering a model for efficiency that payers can extend to their core administrative systems.

Salesforce reports that companies using sales enablement platforms see a 15% improvement in their win rates, highlighting the strategic value of these technologies.5 By incorporating data analytics, payers can optimize their go-to-market strategies and improve member retention in an increasingly crowded marketplace.

The success stories seen with cloud-enabled sales tools demonstrate the potential for enhanced agility and scalability. By embracing cloud integration across their tech stack, healthcare payers can drive more effective member engagement while setting a foundation for operational improvements in core admin systems.

Why This Matters: Cloud-enabled sales enablement tools provide healthcare payers with actionable insights and streamlined processes that enhance competitiveness and efficiency. These tools showcase the benefits of cloud adoption, which can be extended to core administrative functions, helping payers sustain an agile, data-driven approach across their operations.

The Path Forward for Healthcare Payers: Laying the Foundation for Long-Term Success

These top five technology investments represent key areas where healthcare payers are dedicating significant resources to meet evolving challenges and seize new opportunities. By focusing on improving consumer experiences, modernizing core systems, ensuring interoperability, enhancing care management, and streamlining sales processes, payers are laying the groundwork for more efficient and effective operations in 2025 and beyond.

Incorporating these advancements not only helps payers meet regulatory and operational demands but also positions them for long-term success in a rapidly evolving healthcare market. The ability to adapt to these trends will be critical for maintaining a competitive edge while delivering better outcomes for members.

Read Part 2 to explore additional strategic investments, including data science platforms, analytics tools, and payment integrity technologies—equally crucial areas that are shaping the future of healthcare administration.

Author:

Eric Strikowski

Eric Strikowski
Chief Innovation Officer

Sources:
1. 2024 Edelman Trust Barometer, Edelman
2. 17.5% CAGR Fueling $120.6B Healthcare Cloud Computing Market by 2029, MarketsandMarkets
3. The CAQH Index Report, CAQH
4. Health Insurer Financial Performance in 2023, Kaiser Family Foundation
5. Everything You Need To Know About Sales Enablement, Alore