Skip to main content

Benefits Breakdown Newsletter - August 2022

Combating Rising Benefits Costs During Periods of High Inflation

The U.S. inflation rate has increased by 9.1% over the last year, according to the Bureau of Labor Statistics. This has led to significant price increases across various consumer goods and employee benefits such as health insurance. In fact, health insurance costs have already risen for one-third of U.S. employees in the last year, according to a report from the Employee Benefit Research Institute.

This increase in costs presents challenges for employers facing a difficult hiring market. Luckily, employers may be able to mitigate increasing benefits costs without shifting the burden to employees, thus remaining attractive to current and prospective employees. Consider the following strategies:

  • Eliminate underutilized benefits and reallocate resources toward more expensive benefits.
  • Offer a wellness program or similar benefits to promote and achieve a healthy workforce. 
  • Encourage telemedicine benefits to help employees seek convenient virtual medical care.

As employers adjust to increasing inflation and rising costs, these are among the strategies that can help offset the severity of the situation. Employers will need to think carefully about which strategy would work best for their unique circumstances.

How to Select the Right Third-party Administrator

Finding the right third-party administrator can be challenging and organizations often underestimate the time and resources required to select the best candidate for their needs. However, exercising due diligence to find the ideal TPA can pay dividends by ensuring a smooth and cost-effective plan operation and minimizing legal risks. Consider the following strategies:

  • Understand the organization’s needs and priorities. Plans have different needs depending on type, design, asset size and the number of participants. Knowing an organization’s needs and setting priorities to meet them can go a long way toward finding the right TPA.
  • Determine whether a TPA can meet your needs. TPAs offer various services, which should be reviewed individually to understand a TPA’s services and how it administers them.
  • Ensure legal compliance. The regulatory landscape is constantly changing, so organizations should consider how a TPA remains current on legal developments and how it can help with compliance. The right candidate should be able to guide an organization through legal issues.
  • Compare candidates. Reliability is critical in a partner. Organizations may review metrics of a TPA’s actual claim outcomes and know how fast it pays claims and its error rates.
  • Check references. Organizations can ask candidates about other clients of similar size and needs. Then, those clients can be contacted to discuss their experience working with the TPA.
  • Know costs. Organizations should be aware of all TPA-offered services and associated costs.
  • Assess data security. TPAs should have safeguards in place to handle and protect clients’ data.

After making a selection, it’s essential to regularly review the TPA’s performance to ensure it continues to meet organizational needs.

For more information about employee benefits, our services and products, contact HANYS Benefit Services by email or call 800.388.1963.


The information in this newsletter is intended for informational use only and should not be construed as professional advice. ©2022 Zywave, Inc. All rights reserved.


Popular posts from this blog

What is HR vendor management? Overview with scenarios

Vendor management can be a litigious environment where efficiency, transparency and risk mitigation are paramount. With the right advisor in your organization’s corner, you’ll feel more confident navigating vendors and managing their services, ensuring streamlined processes and strategic alignment.   In this blog post, we'll cover the basics: What vendor management in HR entails, why it's important, how it can transform businesses and some scenarios in a few business types. Level up your knowledge and find the right partners to thrive.  Understanding vendor management in HR  Vendor management in HR involves the systematic management of third-party suppliers who provide goods and services essential to HR operations. This includes managing contracts, ensuring compliance with service level agreements and optimizing vendor performance to align with a company's long-term business goals.  A robust vendor management strategy can provide organizations with a structured ...
Read more

Employee Benefits Offerings: What Perks Can You Add?

Employee benefits can play a crucial role in attracting and retaining top talent. Beyond compensation and bonuses, offering a variety of perks can significantly enhance employee satisfaction and productivity. But what should you include in your employee benefits offerings?   What are employee benefits?   Employee benefits encompass compensation, bonuses and various perks outside an employee's wage. By offering flexible employee benefits, you can improve employee productivity and loyalty while attracting and retaining talented candidates.   Personalized benefits examples   The type of benefits offered can vary by industry. We've compiled some of the most popular options to help you explore possible employee benefits strategies .  1. Social opportunities   Employee perks don't always have to be tied to a benefits package. Sometimes, the best way to engage your employees can be through social opportunities. Group activities can help im...
Read more

What is Risk Management? 4 Key Topics to Know

Understanding risk management in retirement programs  Managing a retirement program is complex, with multiple layers of risk. For organizations and their leadership, understanding and mitigating these risks is crucial to ensuring the long-term success and reliability of these programs.   It often leaves human resource professionals, employers and program administrators questioning, "What is risk management, and how can we excel at it?"  This blog post explores the various aspects of risk management in retirement program administration and provides actionable insights to help organizations better manage these risks.  The importance of risk management  Retirement programs are designed to benefit participants and beneficiaries, but they come with their own set of risks. These risks can be broadly categorized into four main topics:  Fees  Administration  Investments  Cybersecurity  Each of these topics requires meticulous attention and ...
Read more