Benefit outsourcing is a new way that a company can ensure
consistent benefits administration without the cost associated with
maintaining on site benefit managers at small locations or requiring a
large corporate benefit staff. We provide benefit outsourcing for several
of our current clients and the cost savings for the client has been significant.
Initially we collect all of the demographic data from each location along
with plan design(s) and claims experience. Then in consultation with either
corporate management or plant management or both, benefit plans are designed
and approved for each location. In some cases the benefit plans are identical
from plant to plant and in other cases each plant has a slightly different
We then put the case out to bid. Combining several smaller plants into
one group for the purposes of bidding tends to increase the interest by
carriers in the case and tends to control the overall cost of administration.
Significant savings can be realized in life insurance, AD&D, and long
term disability. With larger groups we have found that we can effectively
offer voluntary programs for dental and vision with rates that are generally
half of the normal costs.
When all of the bids are received, they are presented to management in
a method that allows easy comparison of each aspect of the costs and benefits.
Once the carrier(s) are selected (one current client uses nine different
carriers), the real work begins.
We prepare enrollment materials in our office including multi-lingual
material where appropriate. In several cases we designed an enrollment
form that is used by all carriers. This allows for ease and consistency
throughout the company. We then visit each plant and have enrollment meetings
with all employees and if desired with dependents after hours.
After the employees enroll, all enrollment forms are sent to our home
office for processing and distribution to the appropriate carrier. We maintain
all eligibility in our office for future reference. In some cases we prepare
a single monthly bill for each plant combining all carriers onto one bill
for the plant with one line item per employee. We then prepare a common
remittance report for each carrier involved.
We provide a customer service support toll free line for employees and
dependents to call with claims questions and problems. All problems are
handled with courtesy and concern for the employees or dependents time
constraints. When a resolution has been reached, the insured is called
back and told that the matter was resolved and what the resolutions means
to the employee. This allows your employee to spend as little time as possible
worrying about claims issues.
We provide an ongoing source of information for your plan management
about how to handle problems with FLMA and COBRA. For most clients, we
also provide COBRA administration including initial notification, HIPAA
certificates of coverage, monthly billing and all carrier notifications.
We maintain monthly claims experience by plant location and for all overall
group (see example). This allows us to keep management informed of potential
rate increases in advance of the renewal.
All carrier contact is through our office. This allows the carrier(s)
to have one voice to answer to rather than several. The carrier generally
finds this most useful, especially when decisions must be made quickly.
Benefits outsourcing allows management to concentrate on sales and production
rather than spending time and resources on employee benefits. The company
is assured that all employees are being treated fairly and that the benefit
plans are presented fairly. Plan provisions can more easily be updates
to follow changes in either Federal or State laws as appropriate.