Managing Employee Insurance Benefits While Staying Compliant

By Sam Richardson, Implementation Team Lead July 31, 2024 Categories:

At the start of 2024, government officials reported that healthcare plan selections saw a massive increase of over 8 million more people who now have coverage since President Biden took office. To get a head start on what could be an increased demand for benefits while staying compliant with regulations, employers can leverage insurance management software.

Managing insurance benefits now may alleviate some of the administrative burden before the open enrollment process begins next quarter. The amount of time a business invests into managing employee insurance benefits is minimal compared to hours spent attempting to accomplish the same work. 

Software tools can make it easier to manage employee insurance benefits and remain in compliance because modern technology offers ease in data transfer, integration with workforce tools and reduced paperwork and manual processes that can be invested back into a business.

Managing employee insurance benefits with software

Both security and cleaning contractors alike can use insurance benefits management software to handle some of the challenges they may experience managing it on their own. Simply Right is a cleaning company that activated software to help them manage insurance benefits for their 900 employees across the 38 states they operate in. 

“One of the biggest advantages that I’ve seen with TEAM managing our benefits is [number] one: it saves our employees time. We were spending probably five to six hours every month having to go in and check and cross-reference to make sure we’re offering the right benefits at the right time,” said Jake DeBoer, HR Director at Simply Right.

While Simply Right is based near Salt Lake City, Utah, industry software can perform these tasks for other companies throughout the United States in the security and cleaning industries: 

  • Storing data for employees, along with their beneficiaries and dependents 
  • Setting up and managing multiple, complex benefit plans 
  • Creating pricing and eligibility models independently of benefit packages 
  • Assigning and managing benefits by an employee or groups of employees and by job 
  • Testing employee eligibility and validating benefit packages 
  • Leveraging tools and exporting data to prepare for compliance

“Another huge offering that we’ve seen is that we’ve had some issues paying fines because of late offerings or non-offerings, so by having TEAM provide that service for us, we’re ensuring that those are accurately done,” said DeBoer.

Remaining compliant with employee insurance benefits 

With software tools, employers can rely on an integrated workforce management system to aid with insurance benefits processing. Modern technology, like an ERP solution coupled with a team devoted to health insurance coverage, can support employers with filing their 1094s with the IRS and mailing 1095s to their employees. 

Employers who utilize insurance benefits assistance through a software provider are responsible for the upkeep. That entails keeping the insurance benefits module and the information saved to the ERP solution up to date. However, the software offers in-house management tools and resources to aid with the following: 

  • Enrolling or removing employees to or from benefit packages
  • Determining whether employees are eligible for benefits
  • Processing automated tools for enrollment or removal from enrollment of benefits due to termination or lack of hours
  • Reviewing insurance benefits upkeep on a quarterly basis 
  • Reviewing the annual ACA Health Check for preparation of ACA reporting

Employee insurance benefits upkeep 

This service is designed for businesses that want to take advantage of an employee insurance benefits module. It provides support throughout a calendar year and at the beginning of the year when companies need to file with the IRS. The software helps companies confirm that employees were offered affordable insurance. It also ensures that the proper steps were taken to remain in compliance with the federal government. 

The insurance benefits module helps employers perform a validation process. It also helps to assign or unsign employees from a benefits package. Employers simply confirm which employees have changed statuses and received a new insurance package offering. 

For instance, an employee could be promoted from part-time to full-time, or they may reach a minimum of 60 days and become eligible for benefits. Once either of those cases happen, the system then captures that information. It then moves forward by keeping track of employees on a daily basis. This helps validate that each employee receives the correct insurance package. 

This process can save employers in the cleaning and security industries a great deal of time and energy. Traditionally, both industries experience a high turnover rate. A software solution that keeps track of who is eligible for benefits can monitor the day an employee becomes eligible. That task can be challenging when employees are constantly coming and going. 

Choosing TEAM Software by WorkWave

Government policies can change and new regulations can be approved at the expense of a business owner. This requires employers to manage insurance benefits coverage and remain compliant with regulations. To accomplish these tasks, consider the insurance benefits management package offered by TEAM Software. 

For an additional fee, WinTeam users can access dedicated TEAM Software support through our Upkeep service. Speak with one of our representatives to learn more. Find out how your human resources department can become more efficient. Stay in compliance with health insurance coverage and better manage complex group health plans today.