Adminstrator Alert from Shargel & Co: Up-to-Date Administration



Timely Topics for Group Benefits Administrators		Issue 22 August-September 2007

In the last issue we talked about healthy habits for your employees. This issue we're focused on helping you develop "healthy" habits as a benefits administrator.

We know you wear many hats, so here are some tips to make sure little errors or omissions don't turn into big liabilities for your company.

Top Tip: Use Online Resources

Using online resources for administration of your group

insurance can save you time and trouble. It eliminates the hassles of paperwork and busy fax machines. And it's the way of the future.

Here are links to carriers that offer online administration.

Next month we'll detail some of the features available.

Using online administration may require a little learning-curve at first, but is efficient in the long run.

For carriers without employer access at present, including Blue Shield, we can verify your paper/fax enrollments and deletions online for you via email.

Q&A: My monthly bills are changing although it's not open enrollment, why is this?

Age Band Birthdays

Premiums will jump when employees move into higher age-bands, generally at the "0's" and "5's."

Employee Adds/ Deletions

You'll also see changes when you add a new employee onto your benefits or remove benefits for a terminated employee.

Medicare Enrollment

Also pay attention if you have an employee who is eligible for Medicare. If you have 19 or fewer employees, Medicare will be primary and the group insurance premium should be less.

Do a Double Check

Always verify that new employees have been added to your plan or that you have a waiver on file.

Most medical carriers list covered employees on each statement.
Make sure you recognize all the names of newly added employees.
Use online resources where available.

A Word of Warning

Here are examples of rare but potentially disastrous situations we have seen resulting from either a client or carrier's mistake:

One company paying for another company's employee dental premium for several months;
An employee never being added to the dental plan until attempting to access care;
A company "forgetting" to offer coverage to an employee - for four years!

Take the time to check your records. It's worth it!

Note About Dental, Vision, Disability, Life Coverage

With ancillary coverage, it's easier for mistakes to go unnoticed because premiums are lower and usually flat-rate.

COBRA Considerations

It's particularly important to make sure COBRA or Cal-COBRA notifications and coverage are in place.

If they aren't, you risk federal fines as well as litigation!