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Administration Outsourcing

Outsourcing benefits administration may be an option for clients wanting to reduce the amount of time spent on these non-core HR functions in your business. Third-party benefits administration can prove to be cost-effective, provide technology-enhanced solutions, and create greater service flexibility.

Administration Outsourcing Chart

Source: Survey conducted by Society for Human Resource Management (SHRM).

The following services are commonly outsourced:

  • Enrollment and Eligibility Maintenance is technology that allows connectivity between the HR staff, payroll and benefit carriers and vendors to perform tasks online, such as adding or deleting dependents, family status changes, waiting periods, new hires, terminations and publishing open enrollment events. It allows the employee an online view of benefit options and comparison of benefit plan choices.

  • Carrier Premium Billing and Account Reconciliation provides consolidation of multiple billing statements and invoices, enrollment validation and an audit trail of adjustments.

  • New Hire and Post Employment Process Management includes COBRA/HIPAA rights notification and maintenance of continuation forms, as well as premium collection and reconciliation with plan carriers and vendors.

  • Flexible Spending Account Administration manages the administration of client-sponsored health care and dependent care reimbursement accounts.

  • Benefit System Management and Reporting allows employees and HR staff to easily access procedural manuals, provider directories, SPDs and other department-related resources.

Additional Resources