Employee benefits billing solutions like VerifiaBill generate a report for employers called a “Discrepancy Identification Report,” which contains the results of a Benefits Reconciliation audit. This monthly audit compares an employer’s carrier invoice data to the enrollment data within their benadmin or payroll system, and the resulting discrepancy identification report displays all of the discrepancies that were identified between the two data sets.
Employers perform Benefit Reconciliation audits to ensure they are paying exactly what they owe (without over- or under-payments), to reduce financial liabilities, and to confirm coverage of healthcare benefits for employees. For more on Benefits Reconciliation, see “What is Employee Benefits Reconciliation?”
The discrepancy identification report can reveal a number of errors in the data, for example: terminated employees that are still enrolled, incorrect rates, salaries, tiers, or even active employees without coverage. With the errors automatically identified, employers can immediately start working to resolve the issues.
For billing related issues, employers and their brokers will typically work with their insurance carrier to have charges adjusted on their next invoice. If the error is related to the way an employer’s benefits administration or payroll system is configured, they would work with their platform’s customer service team to correct it.
Our data at Beneration shows that 5% of all monthly premium spend is inaccurate (that adds up). Inaccurate carrier charges, adjustments, and complicated HRIS plan setups all mean that Benefit Reconciliation audits are more important than ever. However, most accounting and HR personnel know that this is a very rigorous process. And with the volume of other critical HR responsibilities, it’s not always performed on a regular basis or as meticulously as it should be.
That’s where software tools like VerifiaBill can ultimately streamline benefits reconciliation for employers. VerifiaBill provides consolidated invoicing and invoice auditing services like benefits reconciliation, and automatically identify every single discrepancy that exists between carrier invoices and the benefits administration system. If you need to save time and streamline billing, contact Beneration to learn more about VerifiaBill!