Many businesses are considering offering defined-contribution health benefits as an alternative to traditional employer-sponsored benefits. However, knowing what to expect when it comes to defined-contribution administration is always a good thing when it comes to working with the insurance provider.
- Obtaining employee education – Each of the employees that sign up for this insurance has to understand more about it. They have to know what they are getting, how much they are paying and find out more about the reimbursement that you’re giving. There should be a tool kit that comes with the information from the insurance company to help you teach your employees more about what you’re offering. The company should also send welcome kits to employees that sign up and also have an online support center for them to visit and get more information.
- Allowances for the employees – Software should be given to you so you can send out allowances for all employees that are on the plan. You should also be able to defer new employees until they can get the insurance through one system.
- Submission, processing and reimbursement of claims – All employees should have somewhere to submit their claims in order to get reimbursed through the company. It can be through mail, fax, online or other means to ensure that they can easily check their claim status. The claims should be processed through the system within a day and employees shouldn’t have to worry about claims being rejected. They have to be given guidelines and stick to them when submitting the claims. When the claim has been approved, the employee should get notification of this. The claim should then be given through a check, bank account or payroll addition.
- Online employee ledger – This should be given to each employee so they can keep track of everything that is going in and out of their account. They should be able to add and track information through this system.
- Setup of their plan – Employers and employees should be given access to the database that allows them to change and set up their benefits packages. This should include the overview of the plan, what comes with it, the allowances and premiums, and the documents needed to sign the employee up.
- Tax documentation – This documentation should be available for the company to print out and hand in when tax time rolls around to show what they are reimbursing their employees for throughout the year.