The amount of money you spend on your health plan may seem like a lot, but it might be higher than you think. In addition to the premiums you pay each month, there are administrative costs associated with your health plan that can add up over the years and put pressure on your budget. A recent study by PWC found that the costs associated with group health plans have increased dramatically in recent years. Below, we’ll review some of these costs that are commonly overlooked when people evaluate their health plan options…
What Is an Administrative Task?
Administrative tasks are the day-to-day tasks required to maintain a business. These tasks can include everything from tracking employee hours and pay, to paying for health and dental benefits. Administrative tasks are often not included in the price you see on your invoice, but they can be a significant hidden cost.
What Doesn’t Count as a Task in These Calculations?
Employer contributions are typically the major cost associated with group health plans. But there are other costs to consider, such as administrative tasks. We take a look at some that you may not have considered before. – Waiving eligibility for a new employee: This means that the company is giving up its right to offer coverage to an individual who may have been eligible for coverage under the plan.
Why Have This Rule at All?
Administrative tasks are a necessary part of running your group health plan. But, have you ever stopped to think about all the time and resources that go into administering your plan? As an employer, you may be paying for administrative tasks related to healthcare such as managing the monthly premiums, payroll deductions, and employee enrollment on the group health plan. We’ve compiled some stats from a survey we conducted which show the real cost of your admin-related tasks.
Why Does the Guideline Matter?
Administrative tasks are often overlooked by group health plan participants and their benefits representatives. However, these duties can be critical to the long-term sustainability of a group health plan. Take a look at the guidelines below to see what your benefits representative may not be telling you about the true cost of your group health plan.
How Do You Figure Out What Counts As A Task And What Doesn’t?
The first step is to find out what your plan covers. If you have a PPO or HMO, you should be able to get a list of in-network providers and the services they offer on your provider’s website. If you have an EPO or POS plan, you’ll need to look at the list of providers in your area, then contact them individually. Once you know what’s covered, it becomes easier to figure out what tasks are related to coverage.
What Should I Take Away From All This?
Group health plans are an important benefit for employees and employers, but they can also come with hidden costs that can get overlooked. The most significant cost associated with a group health plan is the administrative burden it places on your organization. This includes tasks like submitting monthly reports to the insurance company, negotiating rates, and billing for claims. If you are considering adding benefits to your employer’s package make sure you understand the true cost of your group health plan so you don’t find yourself in over your head down the line.
