What is employee benefits reconciliation?
Employee benefits reconciliation, or premium reconciliation, is the monthly process of comparing an employer’s carrier invoice data to the enrollment data within their benadmin or payroll system to identify discrepancies that may exist between the two. Employers do this 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.
The truth of the matter is that carrier invoices and enrollment system data are rarely a true match – 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 invoice audits are more important than ever.
How does employee benefits reconciliation work?
To reconcile employee benefit charges against enrollment data, every carrier invoice must be consolidated, which is why benefits reconciliation is typically included within invoice consolidation software, like VerifiaBill for example. The software system audits the benefit billing data against the enrollment information of an employer’s benadmin or payroll system. It then automatically identifies every single discrepancy that exists between the invoices and the enrollment information, and a team of data analysts verify the discrepancies.
Once complete, solutions like VerifiaBill generate a report for employers called a “Discrepancy Identification Report,” which outlines all of the discrepancies that were found in that month’s data.
Should employers use software for benefits reconciliation?
When it comes to employee benefits, data is constantly moving and changing, especially when dealing with numerous insurance carriers and benefit vendors. Unfortunately, carrier invoices and enrollment system data are rarely a match – whether it’s terminated employees that are still enrolled, incorrect rates, salaries, tiers, or even active employees without coverage. Employers need to catch these issues as soon as possible.
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.
If an employer uses a benefits billing solution like VerifiaBill, they can view all of their carrier invoices through a single consolidated invoice summary (and make one payment for all invoices), and view audit reports like the discrepancy identification report all through their online portal. This takes most of the manual, rigorous, and repetitive accounting processes off the hands of employers.
Looking for a software solution for benefits reconciliation?
Software solutions like VerifiaBill provide consolidated invoicing and invoice auditing services that deliver major benefits for employers looking to streamline their entire benefits billing, payments, and accounting processes. With VerifiaBill, employers can access consolidated invoicing, benefit cost allocation, benefits reconciliation, carrier bill-pay, and self-bill generation features all within a single secure online portal.
When it comes to benefits reconciliation, VerifiaBill consolidates and automatically identifies every single discrepancy that exists between carrier invoices and benefits administration system.
Contact Beneration to learn more about VerifiaBill!