{"id":11290,"date":"2024-11-06T11:21:33","date_gmt":"2024-11-06T17:21:33","guid":{"rendered":"https:\/\/www.bbrown.com\/?post_type=insight&p=11290"},"modified":"2024-11-06T11:21:33","modified_gmt":"2024-11-06T17:21:33","slug":"can-benefits-governance-give-employers-a-competitive-advantage","status":"publish","type":"insight","link":"https:\/\/www.bbrown.com\/us\/insight\/can-benefits-governance-give-employers-a-competitive-advantage\/","title":{"rendered":"Can Benefits Governance Give Employers a Competitive Advantage?"},"content":{"rendered":"

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Employee Benefits<\/p>\n

\n Can Benefits Governance Give Employers a Competitive Advantage?\n <\/h1>\n\t\n <\/div>\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\n\t<\/div>\n\n\t\n[\/vc_column][\/vc_row][vc_row][vc_column width=”2\/3″]\n
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\n Can Benefits Governance Give Employers a Competitive Advantage?\n <\/h1>\n\t\n <\/div>[vc_column_text css=””]In today\u2019s competitive business landscape and complex regulatory environment, effective management of vendor relationships and benefit program costs is crucial. One often overlooked area where employers of all sizes can support healthy benefits governance is conducting regular benefit claims audits and service assessments. These practices can uncover key opportunities for better employee experience, cost management, regulatory compliance and process improvements.<\/p>\n

Claim audits involve a detailed review of claims submitted and the corresponding payments made by insurance providers or third-party administrators. Vendor service assessments dig deeper into reviewing contract commitments, the employee experience with each benefit and overall outcomes of the vendor service being provided. Both types of evaluation offer the following three compelling advantages to employers.<\/p>\n

1. Cost Management<\/h3>\n

Benefit costs, including claims and vendor fees, represent a substantial expense for most businesses. By overseeing vendor services and auditing claims, employers can ensure the proper use of funds and mitigate unnecessary or erroneous costs. Auditors can detect errors in claims processing, including incorrect coding, duplicate claims or billing for services not rendered.<\/p>\n

2. Plan Fiduciary and Regulatory Compliance<\/h3>\n

Employers are subject to regulations concerning insurance claims and service providers. An audit can help ensure compliance, minimizing the risk of legal issues and associated penalties. Employers are then equipped with information to anticipate potential risks, allowing them to adjust policies or procedures accordingly.<\/p>\n

3. Improving Processes<\/h3>\n

Regular vendor oversight and audits generate data that can inform strategic decisions, reveal process inefficiencies and enhance transparency between employers, employees and service providers. These valuable insights support employers in their business case in implementing improvements. By identifying administrative challenges, these initiatives can lead to streamlined operations, freeing up valuable HR resources.<\/p>\n

Audits at Work: A Real-World Example<\/h3>\n

One example of how Brown & Brown helped an employer is an audit initiative we completed for a large public entity. Our goals of this initiative were to:<\/p>\n