Common Myths About Outsourcing Benefits Administration & the Reality Behind Them!
According to studies, more than half of the employers are feeling overwhelmed with the increasing complexity of managing healthcare benefits. Continuously changing regulatory reforms under healthcare and bewilderment in administering comprehensive benefits plan in-house team has led employers to explore more automated solutions for addressing these complex employee healthcare benefits. However, a significant number of employers are still doubted for outsourcing benefits administration due to some myths revolving around it.
Here are some common myths about outsourcing benefits administration and the reality behind them:
#Myth 1:
The Cost of Outsourcing Benefits Administration is Too Much, We Can’t Afford It.
Reality: Taking on the expense of an in-house expert’s full-time salary and benefits does not come cheap for businesses. On the contrary, tapping the expertise of benefits administration partners can give them access to a superior level of knowledge without breaking the bank. A benefits administrator stays up-to-date with the current federal and state regulations and enables employers to keep up with the government mandates thereby helping them navigate the compliance landscape.
#Myth 2:
Benefit Administrator Cannot Handle Employees’ Queries.
Reality: With continuously changing regulatory reforms, benefits administration has become complicated. In this scenario, having a single point of contact who can answer all employees’ queries is a huge plus. Benefit administrators can ask employees about their benefits choices, their budgets and can help them with their plan election and medical claims for the year-round. Giving periodic education on benefits, an administrator can help employees become better benefits decision-makers.
#Myth 3:
Benefits Administration Provider Cannot Handle our Complex Benefits.
Reality: Every organization has its unique eligibility rules, benefits offerings, and preferences, etc. Right benefits administrator partner examine your current administrative processes, apply rules within the system and streamline your employee benefits practices against industry best practices. Working with a benefits administrator gives you flexibility down the road to respond to any change in regulatory requirements and simplify your administrative workflows.
#Myth 4:
It is not for our Company:
Reality: Benefits administration is a complicated task whether it is a small business or any large enterprise. A benefits administrator acts as an extension of the HR department and frees up HR resources for more strategic functions other than benefits. Benefits administrators having a broader view about benefits, help employers make the best choices and get more for their healthcare dollars.
Summarizing It Off:
Administering employee benefits is a painstaking activity for every business owner. The above article describes some myths revolving around outsourcing benefits administration and the reality behind them. Having the right partner and solutions in place can deliver your employees better benefits experience while trimming down the benefits costs.
