Point Solutions

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You're listening to Talking Benefits, the podcast brought to you by the International Foundation of Employee Benefit Plans. Every month, we dive into retirement, health care, hot topics and trends, and whatever else the benefits industry throws at us. I'm Justin Held. I'm Ann Patterson.

I'm Stacey Van Alstyne. Let's talk benefits. Hello, everyone. Today, we are diving into a topic that's getting a lot of attention in the benefits world, point solutions.

Yes. And if you've been anywhere near health benefit strategy lately, you've probably heard the term a lot. Today, we're going to explore this thanks to an article featured in the first quarter 2026 edition of Benefits Quarterly. Authors Jason Jossie and Sadhana Paralkar of Siegel outlined points to consider with point solutions.

This is more common than I initially thought. In fact, the article says that more than 80% of employers now offer at least one of these solutions. But the big question is, are they actually delivering value? That's right.

So today we're going to unpack what point solutions are, why they've exploded in popularity, and most importantly, how plan sponsors should think about evaluating them. So let's start simple. When we say point solution, what do we actually mean? So at a high level, these are typically standalone tools, often apps, that focus on a specific condition or health need.

So think diabetes management, musculoskeletal support, mental health, etc. Right. And they're really designed to fill gaps in care. So instead of relying on in-person visits, these tools provide ongoing, often virtual support in between.

I've heard them described as disease management 2.0, which feels accurate. Yeah, that's a fantastic way to put it. So the difference now is that instead of phone calls and outreach, it's digital, personalized, and it's often driven by technology and increasingly in this day and age, AI.

And that part of why they taking off You got rising health care costs more chronic conditions and a workforce that expects digital easy solutions So if all these employers are adopting point solutions what are they hoping to get out of them? Yeah, there's a few pretty big goals. So according to the article, one is cost management, trying to get ahead of expensive conditions such as diabetes or avoiding surgery when possible. But it's even broader than that.

Employers are also looking at productivity, retention, and overall employee experience. That's a good reminder. This isn't just about healthcare claims. It's about keeping people healthier and more engaged at work.

Exactly. And there's also an access issue. So for example, mental health solutions help fill the gap where there simply aren't enough providers available. So what's interesting is how targeted these solutions have become.

We're seeing programs specifically tailored to conditions like weight management, muscular skeletal conditions, or even cancer navigation. And with that comes complexity and maybe a little overwhelm? It sounds like a lot of overwhelm. So the market is saturated, thousands of vendors, each promising strong results and ROI.

So let's dive into that big question, do they actually work? Yes, because promises can sound pretty impressive, right? And here's the honest answer that authors Jason and Sadna provide. They can work, but they're not a silver bullet.

And I think that's key. These aren't meant to replace broader health strategies. They're a component of them. And success isn't guaranteed.

A lot depends on participation and engagement. That's right. And that's one of the biggest challenges here. Often, less than 20% of eligible employees actually engage with these programs.

So even if a solution is effective, it may not reach enough people to move the needle. And then there's the selection bias issue. People who use these tools are often already more motivated or recently had a health scare. And this makes it harder to actually measure that true impact.

So let's shift into evaluation because this is where things get really important for plan sponsors. And also where they can get a little tricky. So one of the most important ideas covered in the article is the difference between leading and lagging indicators And the authors break it down this way Leading indicators are the early signals things you should see improve within the first year Like participation rates engagement and satisfaction That's right. And also things like medication adherence or improvements in biometrics like A1C or blood pressure.

And those are critical because they're predictors of long-term success. Which brings us to lagging indicators. Right. So things like reduced health care costs or fewer hospitalizations, those take time, often two or more years.

And I think this is where some employers get tripped up. They expect immediate ROI. But in reality, costs might actually go up at first. Exactly.

Because people are engaging more with their health care. They're going to appointments, they're getting tests, and these are all good things. So the key is understanding what kind of utilization is increasing. Preventive care, that's positive.

Emergency care, that's a different story. Yeah, so let's talk accountability because with so many vendors, how do you ensure you're getting value? So the article recommends starting with the contract, and this is an area where clarity really matters. Absolutely.

Employers need clear goals, defined metrics, and performance guarantees, and not just relying on ROI as the only measure. That's right. An ROI can be tricky to measure as well as sometimes objective. So Jason and Sadna say that it's better to include more objective metrics, clinical outcomes, engagement, utilization.

And those metrics need to be independently validated whenever possible. What about performance guarantees? So they are important, but only if they're tied to meaningful and measurable outcomes, the article points out. And there needs to be real accountability, like fees at risk if targets are not met.

And I'd add contracts should be clear and revisited regularly. these solutions evolve really quickly. So even the best solution won't work if people don't use it. Exactly.

And the article suggests following an implementation strategy. Right, it says fragmentation is a big risk. Too many point solutions, not enough coordination. So integration matters making sure these tools work with existing platforms and navigation systems And just like any benefit offering communication is huge You need consistent and targeted messaging Right And especially because many people won't engage until they really need it, like after a healthcare event.

Right. So the goal is awareness before the need even arises. And sharing success stories can really help drive that engagement. All right.

So let's wrap up. Point solutions are here to stay, but they require a thoughtful strategy. And it's not about adding more solutions, it's about choosing the right ones and integrating them effectively. As well as setting realistic expectations.

Focus on early indicators, measure carefully, and take a long-term view. When done right, these solutions can improve health outcomes, enhance the employee experience, and support broader workforce goals. So if you'd like to explore this topic deeper, please check out the first quarter issue of Benefits Quarterly, which is available to members of the International Society of Certified Employee Benefit Specialists. And also, international foundation members can get this through the Benefit Knowledge Center, or just reach out to us and we'll be sure to get it to you.

The article is titled, Evaluating Point Solutions and Their Impact on Healthcare Costs and Outcomes, and it's written by Jason Jossie and Sadhna Palakar of Siegel. Awesome, Stacey. Well, thank you all for joining us today. We will see you next time.

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Talking Benefits is a production of the International Foundation of Employee Benefit Plans, the largest educational association for those working in the benefits industry. If you're into benefits, check out all the International Foundation has to offer at ifebp.org. Our show is hosted by Justin Held, Stacey Van Alstyne, and me, Anne Patterson.

This episode was edited by Amanda Gilsmer. Today's program is copyrighted in 2026 by the International Foundation of Employee Benefit Plans, all rights reserved. The opinions expressed in the podcast are those of the speakers and not to be used as legal counsel.