Open enrollment is a crazy time for HR and then we have the New Year beginning. As the New Year starts then also comes the budget meetings, kickoff meetings, employee performance meeting … you get it, there are a lot of meetings.
All the craziness going around the office can also lead to a few things slipping through the cracks and sometimes these cracks can be big and expensive hassles. One item that my clients struggle to find the time to do is reconcile their bills after open enrollment. Because of all the changes being made during open enrollment this is a very important task that the time needs to be taken to complete.
Reconcile the first billing cycle very closely after open enrollment:
- Open enrollment is the time almost all the changes are made to the bills.
- Check for changes, terms, adds and employees moving their coverage tiers.
- Use the deductions information provided by your Broker or the enrollment platform as your guide.
- Make your Broker aware of discrepancies that you may find quickly. Within the first 30 days corrections are easy to make.
Why reconciling is a cost issue:
1. Changes to medical plans can be done no later than the 3rdworking day of the month. After that time the employer is responsible for the termed employee’s premium for the remainder of the month.
2. When retro terming an employee the carrier has full discretion of what they allow. Some carriers are lenient while others are strict.
3. If a term is sent too late the premiums will not be returned and the employer will have to eat the cost.
4. By making sure that the employee’s deductions are correct right off the bat neither the employer nor employee will have to make up the cost of the mistake 6 months later. This is a big burden on some employees especially.
Employee benefits are important and the administration of the benefits is too. If you need help let us know, we know that when you offer employees benefits you also need a guiding hand with administration too. WBS provides the tools an HR department needs to be efficient and effective.