Health benefits or benefits in general helps employees feel secure and be at their best on the job. The difficulties as far as benefits administration goes are faced by the employers. The Affordable Care Act along with the economic growth is poised to change and challenge the way employers approach employee benefits.
Outsourcing non-core activities has become a competitive corporate strategy and is viewed by many as the most advantageous means of accomplishing their business objectives. As per a survey conducted by HRmarketer.com, about 36% of the organizations identified compliance as their single most important issue when it comes to Benefits Administration. This isn’t surprising given the sheer complexity of the health care reforms. About 30% of the organizations wanted to reduce their administrative costs and 19% of the organizations wanted to increase the employee self-service technologies.
Given these pain areas, the three game changers in Benefits Administration that can make a serious mark are:
1. Compliance as a Service (CaaS)
It is an ongoing challenge, in the Benefits landscape to stay compliant with the ever evolving laws. Organizations need to setup compliance teams to help identify immediate risks and assist in building compliance. Compliance assessment will be the need of the hour to assess and mitigate risks and resolve immediate issues. The compliance services teams will also be involved in monitoring the laws, regulations, related to Affordable Care Act, COBRA, HIPAA, ERISA, USERRA, etc. Many HR professionals describe healthcare reforms as the single biggest challenge given the multitude of changes that an HR professional needs to absorb. The penalties that pop up as a risk due to compliance violations compound this. Companies are keen to transfer the risk to the outsourcing firms and therefore the need for CaaS
2. Low-cost Delivery of Benefits Administration
According to study done by Sourcing Analytics, the cost of performing benefits administration in-house is nearly 18% higher than outsourcing. And from our experience offshoring major chunk of administrative work could see organizations save up to 50% in Cost. Organizations are constantly looking to evaluate the performance of their corporate functions with regards to cost. Administrative cost reduction is top priority for most organizations, despite the multiple factors like aggressive rate of healthcare or the financial pressures that economy continues to place on organizations.
3. Systems that support Private Health Insurance Exchanges
The private health insurance exchange enrollment is projected to reach 40 million people by 2018. This is a great opportunity to set up intuitive private exchange systems. The best systems can integrate multiple insurance programs, from subsidised programs to individual, family, and group plan coverage. These private exchange platforms provide guidance on how to make the best health coverage decisions. Money will thus be saved by the employer and employees. This will be one of the biggest game changers over the coming months.
With health care compliance risk looming high, more and more companies want to reduce their administrative cost and these are a few strategies that could be your winning formulae.
Write to email@example.com, to set up a time with our Benefits specialist, who can assist in mitigating your compliance risk and reducing administrative cost.