Your manual employer invoicing process is set up to fail: Three key issues
It’s likely you’re invoicing employer clients manually – pulling data from multiple sources such as claims administration software and COBRA administration software, matching in Excel or Access, and generating PDFs or data files.
These systems do not meet your needs and accommodate broker’s requests for client-specific customizations. They lack the controls to ensure data accuracy and compliance.
And the strain on employer invoicing will continue to grow. There’s a trend of more employers adding benefits as HSAs increased from 14 percent in 2010 to 30 percent in 2019 for private industry workers (last data available). More recently, millions of people who lost employer-sponsored health insurance amid COVID-19 layoffs in 2020, COBRA plan adoption rose considerably and added further complexity to third party administration. COBRA enrollment is expected to continue to increase in 2021 as the proposed stimulus bill would subsidize 85% of insurance premiums through September 2021.
These forces mean big business for TPAs, but only if directors and CEOs address existing issues that inhibit their potential for growth. Here are the most common failure points that we’ve solved for our partners.
Issue #1: Collecting the data is prone to human error
One of the most common issues our clients come to us with is pulling data from multiple sources like claims administration software and COBRA administration systems. Their teams struggle with the often cumbersome tasks of manually pulling reports, organizing data manually using copy and paste functions, and ensuring they collect all data on time and accurately. Our clients have told us that before they used TPA Stream, each system they’d introduce or need to collect data from increases the likelihood of error.
Issue #2: Once you have it, data manipulation manually is very difficult
Third party administrators who use a manual employer invoicing method face challenges manipulating data from different admin systems to consolidate it all onto one invoice for their clients. Manipulating and consolidating the data from multiple sources is prone to error and omission. Invoices often need to be completed in a short period of time, adding stress and strain to your team’s resources. One solution is to hire more staff members to help administer this complex task, but you’re not solving the core issue that automation could. In fact, adding more people magnifies errors that may occur without a robust and time-intensive QA process.
For more on how manual processes are affecting your team, check out this related post: Two key ways your employer invoicing process isn’t working
Issue #3: Meeting various broker requirements monthly is time and resource intensive
Using the same data, brokers often require different divisions on the invoice so they can remit payment appropriately, or they require multiple statements on one invoice. There’s a trend to add additional products to a benefits package which raises the time spent on each invoice. This cuts directly into your profit margin. Invoices can typically take anywhere from five to twenty minutes to generate each, depending on the level of complexity and skill of your administration team. In some situations, it can take much longer: like when audit reports or statements need to be provided with the invoice, or different statements are required for multiple divisions or entities.
Automate Employer Invoicing with TPA Stream
There’s a simple solution that helps your administration team: TPA Stream. TPA Stream’s Employer Invoicing solution securely automates the manual week-long data matching and entry task of your team in just one hour. TPA Stream instantly creates invoices that meet the most complex of broker requirements instantly. Our partners have told us they’re able to reduce errors exponentially, resulting in better service for their clients.
Let us learn about your needs and show you how we can help – Schedule a demo with us!