Ken McCarthy Details FedPoint’s Innovation Priorities & Federal Benefits Strategy

FedPoint Head of Business Development Ken McCarthy says the company’s success stems from a culture grounded in public service, employee empowerment and a mission to support federal employees and uniformed service members. In a recent ExecutiveBiz Spotlight interview, McCarthy discussed how FedPoint blends service-first values with modern digital platforms, secure cloud infrastructure and data-driven decision tools to simplify the federal benefits experience for millions of enrollees.

He also outlined the complexities shaping federal benefits administration, the technologies influencing customer engagement and the industry forces informing FedPoint’s growth strategy. McCarthy, who oversees business development, account management, marketing and strategic partnerships, emphasized the organization’s long-term focus on operational excellence and customer-centric innovation.

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ExecutiveBiz: Tell me about FedPoint’s culture. What aspects of the company do you think are contributing most to its success while helping to attract and retain top-level talent?

Ken McCarthy: FedPoint’s culture is built around purposeful service, continuous improvement, and a deep commitment to the federal and military communities we serve. As a benefits marketplace operator and third-party administrator, we deliver world-class customer service to millions of federal civilian employees and uniformed service members, ensuring that their experience when choosing and using their benefits is seamless, secure and responsive.

This mission-centered approach resonates deeply with our employees and creates a strong sense of meaning in their work. Our people are not just part of the process. They are the driving force behind every advancement, empowered to challenge the status quo and bring forward bold ideas that fuel our innovation. Their service-first mindset ensures every customer is served with empathy, expertise and care.

Corporate citizenship is also a core component of FedPoint’s culture. At the local level, we support causes that matter to our employees by offering paid volunteer time, matching donations and employee-directed giving programs. We also partner with national organizations such as Federal Employee Education & Assistance Fund, The Military Officers Association of America and the Department of War Military Spouse Employment Partnership Program that support the federal and military families we serve.

Regardless of the circumstances, our bias is always to support the members of the federal workforce and uniformed services that we serve through every stage of their journey.

EBiz: What are some of the current challenges in the federal benefits landscape, and what is FedPoint doing to address them? 

McCarthy: Administering federal and military benefits programs comes with a unique set of complexities. For one, as a government contractor, the ability to accommodate and comply with stringent (and frequently changing) federal regulations and information risk and security standards is a must. As a federal benefits administrator, we also are accountable for managing program rules, pay frequencies, payroll vendors and eligibility requirements that can differ by agency, job status and/or benefit program. Yet another layer of complexity is that government-wide benefits programs like FEHB and FEDVIP offer a wide array of insurers and plan options, far more than the typical private employer benefits package.

Variety is valuable, but too many choices can sometimes make decision-making more challenging. Our goal is to simplify the benefits experience for eligible enrollees by delivering a streamlined user experience and providing intuitive decision-support tools that allow them to assess plans by price, location and coverage features—helping them make informed choices that meet their needs.

The current federal landscape is heavily focused on efficiency and accountability, and we are well-positioned to support those priorities. Our modern and secure digital platforms are designed to be intuitive and scalable, allowing us to deliver high-quality service with maximum operational efficiency. 

The reality is that as a federal contractor, being flexible and responsive is the name of the game. To be really successful, you have to not just accept but embrace the idea that you’ll be presented with continuous challenges and opportunities, whether it’s the result of policy shifts, natural disasters, new regs, executive orders, temporary shutdowns…the list goes on. We’ve thrived in this dynamic environment for nearly 25 years, in part by embracing an agile approach to change management. It helps to have a clear mission. Regardless of the circumstances, our bias is always to support the members of the federal workforce and uniformed services that we serve through every stage of their journey.

EBiz: Which technologies is FedPoint using to reshape how we shop for insurance and interact with customer service?

McCarthy: FedPoint takes a strategic, security-first approach to technology adoption. Our goal is to be cutting edge but not “bleeding edge.” As stewards of federal data, we rigorously evaluate new tools to ensure they meet strict privacy and risk management standards before implementation.

Over the past several years, we’ve migrated key systems and infrastructure to the FedRAMP cloud to enhance scalability, cost-effectiveness, security, disaster recovery and speed to market innovations. Most recently, we’ve implemented a digital workflow and automation platform powered by ServiceNow to streamline and modernize our service delivery.

Increasingly, AI is playing a growing role in how we understand and serve our customers. Today, with appropriate safeguards in place, we use these tools to identify preferences and pain points, leading to measurable improvements in call center performance and enrollee communications. As a matter of fact, the initiative to improve caller experience based on AI-driven insights helped us win three Stevie Awards earlier this year for innovation in customer service.

Ultimately, our tech strategy is about delivering smarter, faster and more secure service, while staying grounded in the responsibility that comes with serving the federal workforce.

EBiz: What factors or GovCon industry trends are influencing your growth strategy as you look toward FedPoint’s future? 

A: Our business model already aligns well with the government’s push toward consolidation and centralization. As a third-party administrator for large-scale federal and military benefits programs, we’ve long championed the value of centralized marketplaces. We’ve seen how a single, integrated platform—connected to every federal agency and payroll provider—can simplify enrollment and premium collection for insurers while driving self-service and delivering a seamless experience for enrollees.

This model also fosters healthy competition among participating insurance carriers. Giving shoppers the ability to view and compare plans side-by-side incentivizes the insurers to offer compelling pricing, strong networks and high-quality service. That competitive dynamic drives continuous data-driven innovation and product improvement, resulting in better options and price for enrollees over time.

However the GovCon landscape evolves, FedPoint will continue to deliver scalable, efficient and customer-focused digital solutions that align with federal priorities.