HRA administration company, Clarity Benefit Solutions, lists common administrative pitfalls often experienced when administering employee benefits plans.
Administering employee benefits can be a complicated task. The rules and regulations are always changing and becoming more complex. In that case, a small administrative error can prove costly—there are significant penalties for errors, incorrect documentation, and missed deadlines. It also can have a devastating impact on the person whose coverage is affected by administrative errors.
Here are common administrative pitfalls to avoid when administering benefits.
Not Utilizing Technology. Handling all benefits administration tasks manually can lead to costly human errors. Transcribing information incorrectly from one form to another can cause errors in essential fields like name, birthdate, hire date, etc. which can lead to incorrect coverage. Technology like data integration, reporting, and cloud storage reduces redundancy, increases accuracy, automatically generates reports and makes information available anywhere and anytime.
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Not Communicating Thoroughly. Communication is the most important element of benefit administration. Many people make the mistake of only communicating thoroughly during open enrollment, but the lines of communication should be open all year long. This way, employees have time to make informed decisions while having access to any resources they might need.
Not Accurately Keeping Census. For some benefit plans, there needs to be accurate census information in order to determine the amount that a company needs to contribute. Sometimes, information gets left out of the census or inaccurate hire and birth dates are reported; this could result in an inaccurate amount.
Not Tracking Eligibility Criteria Correctly. There are eligibility requirements regarding age and number of hours worked that may affect coverage and premiums. If those are not tracked correctly, employees may still be receiving coverage when they shouldn’t be, like in the case of a dependent turning 26 or an employee dropping below the minimum number of working hours required for eligibility.
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Not Communicating Important Changes. Severe illnesses, accidents that leave employees unable to work, and job elimination can all impact coverage. There needs to be a clear line of communication in those cases, otherwise, important deadlines will be missed.
Making Sure Forms Are Up to Date. Make sure all forms contain accurate information and are signed. Otherwise, when claims are filed, documents may not be accepted right away and deadlines could be missed.
About Clarity Benefit Solutions: Clarity Benefit Solutions HRA Company provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.
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SOURCE Clarity Benefit Solutions