Data Data Everywhere - Verizon Communications uses the Internet to administer its healthcare plans - Brief Article

Administering corporate healthcare plans over the Net is about as sexy as a tub of Crisco. But don't tell that to benefits managers at telecom giant Verizon Communications. Formed by the recent merger of Bell Atlantic and GTE, Verizon employs more than 260,000 workers in 40 countries. That makes for a lot of medical claims. In the U.S., Verizon deals with 200 HMOs in 43 states. What's more, insurance vendors want the same data in different formats--making for even more work.

So in 1998, managers at then-Bell Atlantic turned to the Net for some help. The company hired eBenX Inc., a Minneapolis-based emarketplace, to oversee the HMO portion of its health benefits program. EBenX's online exchange draws eligibility and financial data from Verizon's overall benefits provider and repackages it in a suitable form for various HMOs.

So far, the virtual approach has been a hit at Verizon. "Each HMO has its data formatted in a different way, notes Sheila Meehan, director of health benefits planning for Verizon, in New York. "But eBenX can receive data from us and send it to the HMOs in a format they're comfortable with."

For companies awash in a sea of healthcare data, any help is appreciated. Says Bruce Hochstadt, an industry analyst at Thomas Weisel Partners.: "EBenX is taking a hassle off the back of the HR or benefits department."

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