Vendor Analysis
published on Dec 21, 2023
Report Overview:
This NelsonHall vendor assessment analyzes TELUS Health's offerings and capabilities in next generation benefits administration, covering health & welfare and pension administration.
Who is this Report for:
NelsonHall’s Benefits Administration profile on TELUS Health is a comprehensive assessment of TELUS Health offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of Benefits Administration Services and identifying vendor suitability for security services RFPs
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the Benefits Administration Services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of TELUS Health’s Benefits Administration Service offerings and capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphasis, and new developments
- Analysis of the company’s strengths, weaknesses, and outlook
- Revenue estimates
- Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s offerings and key service components
- Analysis of the company’s delivery organization including the location of delivery locations.
Key Findings & Highlights:
Founded in 1990, TELUS Corporation is a global technology company headquartered in Vancouver, Canada, and is the parent company of several subsidiaries, including TELUS Communications, TELUS Health, TELUS Agriculture, and TELUS International. TELUS offers a range of telecommunications, health, safety, and security products and services.
TELUS Health, one of the major subsidiaries of TELUS, is a global health and wellbeing organization providing digital tools and clinical services that focus on total well-being, which includes physical, mental, and financial health, across the full spectrum of primary and preventive care. By way of the LifeWorks acquisition, TELUS Health has provided health and welfare administration services across North America for 57 years, delivering an integrated approach to well-being through its cloud-based platform.
Previously known as LifeWorks and Morneau Shepell prior to that, its journey began in 1966 in Ontario, Canada, when W.F. Morneau & Associates merged with Sobeco to establish Morneau Sobeco. Significant company milestones include:
- 2023 - LifeWorks and TELUS Health unite under one company name and one brand: TELUS Health
- 2022 - TELUS Health completes the successful acquisition of LifeWorks
- LifeWorks (US) Ltd. acquires UK-based Breaking Free
- 2021 - Company name changed from Morneau Shepell to LifeWorks (US) Ltd.; TSX stock ticker changed to LWRK
- LifeWorks acquires Netherlands EAP company, Ascender
- LifeWorks acquires Australian SMG Health Pty Ltd
- 2019 - Morneau Shepell acquires MorningStar Health
- Morneau Shepell acquires Mercer’s stand-alone, large market, health and defined benefit pension plan administration business in the United States
- 2018 - Morneau Shepell acquires LifeWorks
TELUS Health has 831 health & welfare employees supporting 186 clients and ~3m plan participants and ~1,160 pension administration employees supporting 467 clients and ~7.2m plan participants.
TELUS Health has ~2k employees delivering its benefits administration services. Core H&W and COBRA administration principal service delivery locations are in the US and Canada, and reimbursement and spending account administration (via Optum partnership) is 100% U.S.-based. The DB principal service delivery location is 100% U.S.-based as well as DC, which is via the Empower partnership.
Estimated operating models for TELUS Health’s benefits administration offerings:
- SaaS: 30% of participants
- Co-source: 5% of participants
- Full outsourced: 65% of participants.