Advances in technology have made it possible for benefitadmin systems to act as real-time processing hubs for multipleinsurance companies and providers. (Image: Shutterstock)

During a recent discussion with an associate about our business,we agreed that we have traditionally identified four major playersin successful benefit programs: employers, employees/dependents,brokers/advisors, and insurance companies/benefit serviceproviders. But a fifth player has entered the picture and may bethe most important of all: the employer's selected benefitadministration system.

In the past, I often thought of ben admin as a backgroundcommodity. The market has proliferated with a variety of systems tochoose from, all designed to provide benefit administrationfunctions. But as the market has matured, employers haveincreasingly relied on these systems to relieve their team ofburdensome work. How does an employer approach the selectionprocess?

Marty Traynor is anOmaha-based consultant in the benefits field.

Related: Benefits administration complexity creates brokeropportunities

There are some key functions that employers and their advisorsneed to consider. Some have become more important in light of theincreasing number of employees working from home. Others haveincreased in importance based on advances in technology, bothwithin the ben admin platforms and inside insurance companies andproduct manufacturers.

Working from home changes needs in functionality andcommunications. Ben admin platforms need to be easy for employeesand their dependents to access from home. Access via mobiletechnology is part of that, as is an intuitive interface. Ongoingbenefit communication throughout the year needs to be a primary useof the system. It should be easy for employees to obtain info abouttheir benefits and claims processes, enroll in or modify theirbenefits, obtain forms, and update their info for the employer. Thesystem can also act as a communications hub, pushing out messagestargeted to specific employees.

Second, advances in technology have made it possible for benefitadmin systems to act as real-time processing hubs for multipleinsurance companies and providers. These connections are automateddata feeds between the employer and their insurers. There's never agap between a change and the insurer being updated. This can extendto automated processing of the evidence of insurability provided bythose applying for excess coverage, or entering the program whenineligible for guaranteed coverage. This eliminates confusion foreveryone.

Billing often causes administrative issues and extra work forthe employer's team. It's important to understand how the systemoperates with respect to the insurance company billing systems andthe employer's payroll system. When there is an interface betweenthe bills and payroll, with the benefit admin platform providingthe hub, there can be seamless transition of info between theemployer, payroll and insurer. All processes happen simultaneously.Most billing issues will be eliminated.

Selecting the appropriate benefit administration system isimportant. Key factors include:

• Capabilities for ongoing benefit related communications toemployees
• Ease of accessing the system by remote employees (including theemployer's benefit management team)
• Interfaces between the benefit administration platform, theemployer's selected benefit providers, and their payrollcompanies
• Traditional evaluation standards like price, customertestimonials, and demonstrated functionality

Read more: 

• Benefits administration platform vendors: Whatbrokers should consider
• Zenefits 2.0? Parker Conrad is at itagain
• Benefits administration: trends, deal breakers andtechnology's massive potential