Blue Cross Blue Shield of Massachusetts – Valuing Accuracy, Flexibility, and Scalability

Situation

Blue Cross Blue Shield of Massachusetts, an independent licensee of the Blue Cross Blue Shield Association, has been providing high-quality, affordable healthcare to the people of Massachusetts for more than 25 years.
The organization manages sales compensation plans and processes monthly commission transactions and annual bonus payouts for a network of approximately 800 brokers. However, the company lacked an efficient system for managing commission payout processes and a robust planning procedure or the documentation to support it.

Challenges

The company required a highly customizable solution with the capability of providing summary and detailed statement reports to its brokers on a consistent basis. The carrier’s plan document was vague and required discussion to iron out the details for a new system that would be better equipped to handle its complexities.
In addition, BCBSMA had a highly manual process for managing data, including broker alignments. The previous system had limited automatic validations to prevent data entry errors. In some instances, manual data entry errors would cause erroneous results.

Solutions

Optymyze executed a program that responded to each challenge BCBSMA was experiencing. The software platform itself provides a much more detailed view into the company’s incentive compensation plan. At the same time, Optymyze eliminated manual processes, which in turn reduces any likelihood of data entry errors. Brokers now have access to online, real-time reporting. This capability alone has led to a holistic mindset shift, where brokers now feel more empowered to use the platform as a resource.

Outcomes

The BCBSMA team has been impressed with the overall accuracy in results, from both a commission and bonus plan perspective. The lack of payment swings and inaccuracies has fostered a much more precise and predictable forecasting process. In terms of overall process improvement, running broker commissions, which used to be a 4.5-hour process, now takes 3.5 hours – a 22 percent improvement. Even better, the process to run bonus plan commissions has decreased from 3.5 hours to 30 minutes – an 85 percent improvement.

Future Plans

BCBSMA continues to grow their partnership with Optymyze. In the upcoming months, Optymyze is developing a credentialing application to help BCBSMA better track compliance of brokers’ license and certification information. Future enhancements also include additional automatic processes to handle plan exceptions and an in-depth sales forecasting solution to better predict annual incentive budgets.

  • Optymyze executed a program that responded to each challenge BCBSMA was experiencing
  • Brokers now have access to online, real-time reporting
  • Running broker commissions, which used to be a 4.5-hour process, now takes 3.5 hours – a 22% improvement
  • The process to run bonus plan commissions has decreased from 3.5 hours to 30 minutes – an 85% improvement
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