Namely, Cigna collaborating for middle market benefits platform
- A startup meets an established company in a collaboration that looks to give mid-sized employers a menu of quality benefit plans in an online marketplace. Namely, which offers an all-in-one HR, payroll and benefits platform, will launch the Namely Exchange by teaming up with Cigna, the Philadelphia-based global health insurer.
- This new solution builds on an existing relationship between the two, and expects to offer more flexibility and choice for Namely clients, allowing employers to provide a "wider array of benefits options" that better fit the varying workforce needs and preferences.
- According to a recent Deloitte survey of U.S. employers, 62% of respondents anticipate moving their full-time employees to a private exchange in one to two years, with interest greatest in the mid-market.
Rob LaHayne, vice president, Benefits, for Namely, says the program is a significant advantage, as it saves time for resource-constrained HR departments and provides more access to competitive employee benefits than is typically feasible for companies of their size.
The Namely Exchange will launch with 12 health insurance plans from Cigna, from which HR admins select up to five plan options to offer their employees. The Namely Exchange will also contain pre-defined plan options for dental, vision, disability and life insurance that employers can offer. Employees will then choose plans within the online marketplace. Elections and changes automatically transmit to Cigna, so enrollment is seamless, coverage is up-to-date, and benefits deductions automatically feed into Namely, so payroll can be processed accurately and easily.
Mercer also released an SMB solution late last week, though in a slightly different market. They seek to provide an HR-on-demand service that can answer benefits providers' questions.