Benefits administration is all about the safety concerns of the employees and their management. Once the employees get enrolled with any enterprise business or a company, the employer as well as the employee both are supposed to take care of this matter from the very beginning of the work.
Apparently, it is mandatory according to some federal laws and regulations to ensure an employee with the health benefits prior to their commencement of work.
As far as health benefits are concerned, there are numerous health insurance carriers that are technically termed as first-level benefits service providers. Third-party administrators are those which process claim-related matters and further communication required to settle the benefits. They act as a mediator between the carrier and the beneficiary.
Smart benefits administration software nowadays are embedded with triple enrollment features that allows the beneficiaries, TPA, and insurance carriers to enroll individually and play around the industry.
Let us explore now how they were used to communicate with each other typically and what advancements now they have got through benefits administration software. Also, we will look into the other supportive features that latest hris software cum benefits administrators are embedded with.
Before proceeding ahead with the subject, let us be clear-
What Does ‘Communication’ Here Means?
‘Communication’ here refers to the necessary exchange of information and knowledge required for the settlement of benefits and necessary scrutiny to happen. The exchange of knowledge happens between the benefits providers, the mediators i.e. TPA (if involved), and the beneficiaries.
This term ‘communication’ is usually misunderstood with the casual communication in between the agent and the beneficiary that is and was easily possible through cell phones.
However, the information exchange is way more important and different than that.
The ways in which communication can be done include EDI at the very first slot, and the typical ways after that.
Let us explore what EDI could do and how it can be utilized through an intelligent benefits administration software-
Electronic Data Interchange: The Best Possible Way To Communicate
It is a concept of technology used for exchanging essential documents and information via digital transport using EDI STANDARDS like EDI 856, EDI 824, EDI 820, EDI 821, etc. set for specific purposes.
Standards are developed by ANSI, and are constructed in such a way that any institution irrespective of geographical orientation within the USA are to use the same standards so that there would be no miscommunication and mismatch about the standards to fit as per the company’s protocols.
EDI-VAN: A Middle-man Computer Adds Value (Encryption)
EDI basically involves peer-to-peer knowledge transfer with one mediator in the form of a computer. That middle-man computer digitally adds value (encryption) to the information sent from one end, and transmits further to the other end.
Hashing: Encryption Method
- The encryption method, colloquially known as hashing, is recognized today as one of the safest encryption methods. It has conferred to have the least risk of manipulation even if the data has been lost or stolen meanwhile the exchange path.
EDI Benefits
- EDI allows the information to be passed through certified and regularized standards which are implemented all across the nation and thus, there would be no scope remaining for the mismatch of standards between two peers.
- Easy and faster communication is possible, which relieves many beneficiaries and lets them claim their benefits within the required & most crucial time span.
- It mitigated the other hazardous ways of exchanging essential documents that led to multiple frauds already and would be, if not replaced with EDI.
- Smart hris software for small business nowadays launched with EDI support. So that there would not be any miscommunication nor there would be any delays.
- Insurance carriers, TPAs, and the benefits brokers could easily communicate with each other through benefits administration software using EDI services for quick communication.
However, there are other ways of communication as well.
The Typical Ways Of Communication
When there were no internet means, digital enrollment functionalities, the insurance enrollment was completely processed on paper format only. The knowledge exchange communication was done through emails rarely but via postal means mostly, which used to take more than justifying time in reaching other points from one point.
There were following possibilities of hazard meanwhile exchanging the information via typical means-
- Manipulation of essential information like age, name, date of maturity/expiry, etc.
- Possibility of getting information lost.
- Wear and tear of essential documents
The following possibilities have been cured later after the digitization of knowledge exchange via electronic data interchange method.
Benefits administration software nowadays are launching in conjunction with other essential functionalities like online payroll services, ACA compliance management system, succession planning and talent management, self-service system, etc.
Final Words
This trend of dynamism within the software is quite recognized and praised all over the world. As it is reducing almost all the burden from the HR department and allowing the employees to invest their time on skill and development.
Make sure to have the best of available software in the market, as there are many but the one with electronic data interchange would be the best for adoption. Benefits are something that consumes a lot of time to claim and process, and require ample manpower to handle its administration as well.
Therefore, a software application that could deal almost everything on its own would be desirable and would prove wise to have later on when the employees themselves feel easy and burden free from the unwanted hustle and bustle.
Author’s bio: Scarlett is an adept content writer and is associated with AccomplishEP from the beginning. She has worked with edi solution providers and is often found struggling with some unique topics like online payroll services, talent management software, HR analytics tools, and Insurance management for her upcoming projects. She participates also in the discussions over the information exchange and the technologies in-trend around it. When not working on any of her writing projects, she is either reading any of the Agatha Christie mysteries or busy gardening.
