September 7, 2021
The endless administrative duties that businesses encounter can take a considerable toll on a company’s staff and put a strain on its bottom line. Benefits administration alone is filled with complex requirements that often change. Obviously, a number of problems can arise when businesses lack effective ways to keep up with all of the changing data and requirements. Below are three examples of how a company’s revenue stream can be severely impacted due to the burdens of benefits administration.
In order to achieve 100% compliance, benefits administration employees are required to follow every regulation. Any violation of ACA, HIPAA, and ERISA laws can lead to noncompliance penalties, costing thousands or even millions of dollars. The majority of noncompliance instances are the direct result of ineffectual data management. Unfortunately, many companies lack the technology and trained experts needed in order to maintain precise records and often commit costly filing and recording errors as a result of disorganized manual processes.
Companies have the responsibility to track their employees’ eligibility for benefits coverage. Such data tracking is especially challenging for businesses that hire variable hour workers. Inefficient and/or outmoded manual procedures often result in businesses inadvertently keeping employees on coverage when they are no longer eligible, consuming valuable company funds and time.
While hiring experts might seem like the best approach to coping with heavy administrative burdens, this strategy can incur high costs. Keeping experts on staff consistently is expensive, and in the event of turnover, companies also lose a wealth of knowledge.
The good news is these problems can be alleviated when businesses partner with an experienced company that possesses sophisticated technology, proven processes, and benefits administration expertise. Such a partnership transfers time-consuming tasks to organized, automated systems and relieves the administrative burden on staff.