Providing and administering a competitive benefits package for your employees’ while managing key information places substantial demands upon your HR team.  Benefits administration outsourcing – that is, contracting with an independent firm to provide necessary services which are not core business functions – may be an option.  Outsourcing allows our clients to provide consistent administration with access to improved technology and service flexibility that is cost effective.

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

The following are welfare plan administrative services that are commonly outsourced:

• Enrollment and Eligibility Maintenance – Allows the employee an “online view” of benefit options and comparison of benefit plans choices.  In addition clients can establish and publish enrollment and eligibility rules for important events such as:  open enrollment, new hire, adding/deleting dependents, family status changes, waiting periods, termination, etc…  Technology solutions generally will allow connectivity between the HR staff, payroll and benefit carriers/vendors.
• Carrier Premium Billing and Account Reconciliation – A consolidation of a multiple billing statements and invoices.  Validating enrollments and providing an audit trail of adjustments.
• New Hire and Post Employment Process Management – COBRA/HIPAA rights notification and maintenance of continuation election forms.  Premium collection and reconciliation with plan carriers/vendors.
• Flexible Spending Account Administration – Administration of client sponsored Health Care and Dependent Care Reimbursement Accounts.
• Benefit System Management and Reporting – Allows your employees and HR staff to easily access procedural manuals, provider directories, SPDs and other department related resources.

In choosing a Benefit Administration Outsourcing partner you should ask the following:

• Does the corporate culture of the vendor match or complement that of your company?
• What is your impression of the vendor’s employees and work place?  Will the vendor allow direct dealings with the customer service people who might interact with your staff?
• Do you have a sense of trust with the people you’ll be dealing with directly?
• How stable is the vendor?  Is the vendor flexible?  Is the vendor forthcoming with information?
• Does the vendor have the capacity to handle your needs?
• Is the vendor’s technology adequate?  Will the vendor offer innovative ideas and technology solutions?

Additional Resources:
Society for Human Resource Management
Chartered Institute of Personnel and Development