A few months ago, EverythingBenefits launched Benefits Reconciliation, a new product to help automate the often tedious, time-intensive and error-prone process of reconciling benefits premiums. Our aim is to save you time and money, help you catch and correct errors quicker and avoid liability.
Here are the product highlights:
- Our software matches carrier invoices to employee enrollment records and payroll deductions
- The records from both sources are matched automatically and appear side by side (like in accounting software)
- Any data discrepancies are flagged in red, making it simple identify the issues and to take corrective action
- The above can be connected to client’s payroll, benefits, or accounting platforms
Saving time and money for your organization
The larger the company, the more complicated and time-intensive it becomes to audit benefits premiums each month. With annual turnover rate at around 19%, and as such, significant number of new employees joining, leaving or changing their benefits - it becomes increasingly difficult to track premiums manually.
One of our clients pointed out:
“Nobody put the time aside and therefore nobody was actually reconciling what they were getting billed versus what they were collecting from the employees. The company might have been paying for employees that were terminated a long time ago.”
Another one mentioned, that “the manual process took so long that employees were put off from doing it at all”.
Not auditing benefits premiums can be a costly problem for employers. Aberdeen Group suggests there is a 12-15% carrier error rate on billing - which could easily equate to a significant amount of money. For example, in an organization of 400 employees, and $700/monthly premiums - this would equate to an annual loss of over $500,000 - an amount that most companies could probably do without losing.
Catching mistakes quickly
Some examples of benefits premium errors include companies erroneously continuing to pay premiums after an employee has left the organization. Similarly, it’s possible that a company has inadvertently enrolled an employee into the wrong plan.
With EverythingBenefits' reconciliation solution you’re able to ensure that clients reconcile their invoices regularly (automatically) and thus, catch any mistakes like these sooner than later. As Jonathan Tanis of BeyondPay mentioned:
“(With the solution) you're never going to have an error that's more than 30 or so days old. So you're going to catch mistakes before they become a problem, as opposed to a year down the road and then you may or may not be able to get that money back…”
The tool's handy activity tracker will monitor your firm's reconciliation progress and keep you informed on how many unreconciled invoices you have remaining, rather than you finding out in 3, 6 or more months down the road.
Lastly, it’s important for an organization to consider their exposure to liability surrounding benefits.
For example, employees can be enrolled in wrong plans, have the wrong deductions configured, or even not be enrolled in benefits at all! It sounds crazy, but in our era of multiple players, solutions, and systems communicating with each other, there are a number of places where the ball can be dropped. It's always better to be safe than sorry.
Our partners and clients are continuing to gain a better reign of their premiums. Don't let another month go by to gain control over yours.
Learn more about EverythingBenefits’ Benefits Reconciliation tool. Sign-up for a Demo here.