In the ever-evolving landscape of benefits administration, staying ahead of the curve is critical to winning more business. One area that’s rapidly evolving is benefits billing for third party administrators of employer benefit plans and self-funded employers. If you are involved in administering employee benefits as a third party administrator or accounting or HR professional at an employer, you know that billing is ripe for improvement and automation!
It’s important to keep up to date on emerging trends and technologies that can reshape the way businesses administer benefits and handle payments.
In this blog post, we’ll delve into some of the most prominent trends in benefits billing and how they can impact businesses in the future.
7 Benefits Billing Trends to Watch This Year
1. Integrated Ecosystems for benefits billing
Businesses are increasingly seeking integrated ecosystems where all financial processes, including benefits billing, are seamlessly connected. This trend simplifies data sharing, reduces manual work, and enhances collaboration between departments and partners. TPA Stream’s consolidated invoicing solution, Employer Invoicing, is able to integrate with leading benefits systems like Alegeus and WEX and consume any data from benefits systems. Additionally, Employer Invoicing integrates with leading accounting software to streamline bookkeeping and payments.
2. Sustainable Invoicing Practices
Environmental sustainability is a growing concern for businesses and consumers alike. Companies are now incorporating eco-friendly invoicing practices, such as digital invoices, to reduce paper usage and environmental impact. This trend aligns with broader corporate social responsibility initiatives. In fact, seventy-seven percent of consumers are motivated to purchase from companies committed to making the world a better place (Harvard Business School). By providing digital consolidated invoicing, TPAs are able to align their services with this important initiative and make the world a better place while doing so.
3. Greater Personalization of Benefits Bills
Invoicing is becoming more personalized and customer-centric. Businesses are using data analytics to tailor invoices to individual customer preferences, resulting in improved customer relationships and faster payment processing. Some consolidated invoicing providers, like TPA Stream’s Employer Invoicing for example, offer flexibility for the invoice look and feel, data presented, and timing of when it is sent based on client preferences.
4. Regulatory Compliance and Data Security for Benefits Billing
With an increasing focus on data privacy and security regulations like GDPR and CCPA, businesses are investing in technologies and processes to ensure their invoicing practices comply with these laws. Data protection and secure invoicing will remain a top priority. For example, TPA Stream offers a secure portal where employers can log in to view or pay their invoices directly. This increases the security of financial and personal information in accordance with HIPAA and employee privacy best practices.
5. Artificial Intelligence (AI) and Machine Learning in Benefits Billing
AI and machine learning are poised to revolutionize consolidated invoicing. These technologies can automate data entry, and reconciliation, and even predict payment behavior. As AI algorithms become more sophisticated, they’ll help businesses streamline their invoicing processes, reduce errors, and make increasingly data-driven decisions
6. Cloud-Based Solutions for Benefits Billing
The adoption of cloud-based invoicing solutions is on the rise. Cloud technology offers scalability, accessibility, and cost-efficiency, making it a preferred choice for businesses looking to modernize their invoicing processes.
7. Predictive Analytics for Cash Flow Management
Predictive analytics tools are helping businesses forecast cash flow more accurately. This trend allows for better financial planning and ensures that companies have the liquidity needed to operate smoothly.
Benefits Billing Trends: Looking to the Future
In conclusion, the future of consolidated invoicing is brimming with exciting possibilities. As technology continues to advance and businesses adapt to changing consumer demands and regulatory environments, staying informed about these emerging trends will be crucial for financial success. Whether through AI, sustainability efforts, or integrated ecosystems, the path forward in consolidated invoicing is one of innovation and efficiency. Embracing these trends can help businesses stay competitive and agile in the dynamic world of finance.