Automating the “Last Mile” of Benefits Administration

By Tom Tillman

In the last ten years most employers have invested quite a bit of capital on HRMS infrastructure such as online employee self-service and benefits enrollment software.

Most of the investments have been focused on improving the administration, efficiency, and productivity of the HR organization – an inward focus. But now, especially with health care reform legislation, there are new challenges for employers and for insurance carriers in the areas of eligibility management and enrollment reporting.

Now it’s more important than ever to automate “The Last Mile” of the benefits admin process: the enrollment communication between the employer’s HR system of record and all benefit insurance carriers and providers.

Several Important Points HRMS Execs Are Realizing About the Last Mile

  • Eliminates or reduces premium cost “leakages” – caused by inaccurate or inefficient reporting with the insurance carriers.
  • Improves the employee benefit experience at the point of service.
  • Reduces HR Department overhead associated with benefits admin.
  • Better positions HR department to comply with legislative and regulatory requirements.

The Big Pay Off:  Eliminating “Cost Leaks”

An enrollment cost leak is where, for instance, the employer is overpaying premiums for employees or dependents that should have been terminated off of coverage.  The 2010 Affordable Care Act makes it harder to retro-actively terminate members off of health plans and get premium refunds for them.  A well designed carrier connection system, through its regular and automatic updating capabilities, will plug up these cost leaks so they don’t occur.

Are you doing all you can to ensure that employer cost leaks aren’t occurring with your clients and that their HR staff isn’t overburdened with benefits enrollment administration?

About Tom Tillman:
Tom is the Director of eBenefits Network at Santeon, and is responsible for building the business of automating online employee enrollment connections between employers and insurance benefit carriers.

Copyright © 2012 santeon group. All rights reserved.

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