Think of the most grueling, time-consuming and painful benefits administration task on your list. If you said benefits reconciliation, you are not alone. Transparency and accuracy of your benefits spend is critical for every organization, yet until now, benefits reconciliation has been a game of spreadsheets, rulers and hair-pulling line-by-line comparisons that saps hours of your time each month.
In our mission to automate everything benefits, we are excited to announce the launch of EverythingBenefits’ automated Benefits Reconciliation solution. The era of manual benefits recon is officially over!
Our solution matches carrier invoices to employee census records from a client’s payroll, benefits, or accounting platforms. Data discrepancies are flagged to ensure a clear view into any necessary corrective action. What’s more, these insights are available in perspective of the prior invoicing activities - facilitating resolutions, visually identifying trends, and putting the employer back in the driver’s seat to manage their largest operating expense after payroll.
In our quest to drive automation and simplicity into all things benefits, we identified 4 key reasons why reconciling benefits is vital for employers:
1. Premium Leakage
Premium Leakage may happen for various reasons but it most commonly occurs when an employees’ employment is terminated, and yet the insurance carrier continues to charge the employer for the insurance overage of those employees let go by the company. A concern for your organization? Most definitely, with the likelihood that this kind of discrepancy (if not corrected) could rack up thousands of dollars in costs annually.
2. Under Coverage
Even more important are the costs of Under Coverage. If an employee, who is thought to be enrolled for benefits, does not show up on the carrier invoice then they are not covered by the policy. In this case, should something happen to the employee the employer is financially liable and exposed to potential lawsuits. Employers may be exposed to legal ramifications for the failure to provide coverage to all eligible employees who had elected to enroll in the employers’ benefits. Not only are lawsuits expensive and time consuming but they can be incredibly damaging for employee morale and an organization’s brand.
3. Under Deductions
Under Deductions may be another insidious cost driver for many employers. Should an employee be married with a large family the employer must ensure they are not only deducting a small portion of their paycheck to cover their share of the contribution. In this scenario, the employer does not completely cover the employee’s family, which can be a frustrating and expensive situation should the employee find out and determine that they have been unfairly treated.
4. Corporate Governance
Full transparency into an organization's key operating cost drivers is not something optional but rather required for many employers’ CFOs and controllers to know. While other costs, such as those for payroll are relatively straightforward to measure, audit, and manage, premium reconciliation, as mentioned, can be an incredibly drawn out process, taking over three months each year at some companies.
Automated Benefits Reconciliation is the Answer
Our solution is designed around driving these benefits to employers and their service providers:
- Complete transparency over the fastest growing cost driver impacting employer organizations: benefits insurance.
- Enable employers to accurately report on insights from raw data using beautiful and intuitive graphs and charts - which offers a whole new visual dimension to what was previously presented on dull and boring spreadsheets
- Provide a game changer to controllers and their staff who historically have had to spend significant chunks of their annual hours carrying out manual reconciliations on insurance accounts to surface this data.
If you would like to join the growing ranks of other companies who are already taking advantage of benefits reconciliation using our automated platform, you can request to see a demo today.