Over the last few years, ADP has ramped up its capabilities beyond payroll to focus on other areas of HR, including benefits administration and RPO, making it well-equipped to handle the main HR functions. This is important because many organizations, from SMEs to large companies, are looking to minimize the number of suppliers they deal with – though only if quality of service is not compromised. 

With respect to its benefits administration business, ADP has carefully and deliberately built out a comprehensive offering, which now includes a private exchange. Within the broader picture, ADP’s private exchange integrates with its other HCM offerings, including payroll, HR, and benefits.

ADP’s private exchange offering, targeted at employers with a workforce of 1k-15k, provides an end-to-end experience for eligible and non-eligible employees including:

• Defined contribution
• Public exchange enrollment
• ACA compliance via ADP’s Health Compliance offering, which includes eligibility, affordability, and regulatory management around ACA
• Spending accounts, which will assist employees in saving for their health needs.

Underpinning ADP’s private exchange approach are the following two key partnerships, which essentially provide coverage for an organization’s entire workforce:

• USI Insurance Services: for eligible employees (although clients can continue working with their current broker)
• GoHealth: for non-eligible employees.

USI, an insurance broker and consultant with ~50% of its business focused on employee benefits, will use its ONE Advantage approach for ADP’s clients, which includes:

• Omni: its proprietary knowledge platform
• Network: ~1.5k employee-benefits employees across the U.S. in local markets
• Enterprise planning: regular client engagements focused on broader strategy objectives.

USI will provide eligible employees of ADP’s clients the ability to choose benefits that best suit their individual needs via a broad selection of plan options, which is integrated into ADP’s technology, including Vantage HCM. ADP’s emphasis on innovation, particularly in developing and enhancing the end-user experience, will bolster the solution with appropriate decision support tools in place and will mirror a retail-oriented shopping experience.

ADP’s partnership with GoHealth, on the other hand, will provide support for employees that are not eligible for employer-sponsored health insurance, namely part-time, temporary, and contract workers who need to enroll in a public exchange. Through GoHealth, non-eligible employees will be able to:

• Compare plans and prices offered on the public exchange
• Apply for subsidies
• Receive support from licensed advisors.

ADP’s partnership with GoHealth bridges the gap for non-eligible employees, who are often left on their own to navigate public exchanges, and provides employers with information on how these employees are obtaining health benefits. Like USI, GoHealth is integrated with ADP’s platforms. 

The end result is an integrated private exchange offering within a holistic HCM solution that incorporates payroll, HR, and benefits.