The Role of Technology in Modern Benefits Administration: Why It Matters for Your Business

The Role of Technology in Modern Benefits Administration

Technology has changed nearly every aspect of business management—and benefits administration is no exception. Gone are the days when HR departments juggled paper forms and spreadsheets to handle employee benefits. Today, brokers like BIS Benefits use modern tools to streamline open enrollment, automate employee onboarding, and integrate with payroll systems. If you're still relying on outdated methods to manage employee benefits, you might be missing out on some key efficiencies. Here’s how technology can transform the way your business handles benefits.

The Shift to Digital Benefits Management

Just a few years ago, many businesses still relied on manual processes to manage employee benefits. Open enrollment often involved paper forms, mailed packets, and time-consuming data entry. Fast forward to today, and digital platforms have revolutionized the process.

Modern benefits administration software allows brokers to manage everything from open enrollment to ongoing benefits management through easy-to-use online portals. Employees can make their selections, update information, and even manage claims through a secure online platform—reducing the burden on HR teams and improving the accuracy of data.

Key Benefits of Technology in Benefits Administration

Here’s how digital tools make benefits administration more efficient:

Streamlined Open Enrollment: Open enrollment is often a stressful time for HR departments. A good digital system simplifies the process by allowing employees to review and select benefits online, reducing paperwork and the potential for errors.
Integration with Payroll: One of the biggest advantages of using modern benefits technology is its ability to integrate with your payroll system. This ensures that benefit deductions are accurately calculated and updated in real time, reducing the likelihood of errors in employee paychecks.
Automated Enrollment and Termination: Employees come and go, and managing their benefits manually can be cumbersome. Technology makes it easy to enroll new hires and terminate benefits for departing employees—automatically syncing with payroll systems so there’s no lag in benefit updates.

Employee Self-Service: Employees increasingly expect self-service options. With benefits technology, employees can log in at any time to update their information, check claims, and make changes—without needing to contact HR.

How Technology Improves the Employee Experience

Technology also plays a crucial role in improving the employee experience. When employees have access to an intuitive, online system, they are more likely to engage with their benefits. They can check whether their doctors are in-network, compare coverage options, and get instant answers to their questions—all from their smartphone or computer.

A seamless benefits experience not only improves employee satisfaction but can also reduce turnover. Employees who understand and appreciate their benefits are more likely to feel valued by the company, leading to higher retention rates.

Evaluating Your Broker’s Technology

If your current broker isn’t using modern technology to manage benefits, you may want to consider switching. Ask your broker these important questions:

How do you handle open enrollment?
Does your benefits system sync with payroll?
Do you offer online tools for employees to manage their benefits?

At BIS Benefits, we use cutting-edge technology to ensure that our clients in Georgia get the most efficient benefits administration possible. Learn more about our benefits services.

The Future of Benefits Administration

The use of technology in benefits management will only continue to grow, with more companies adopting systems that streamline processes and improve the employee experience. Whether you're a small business or a larger organization, now is the time to explore how digital tools can help your company handle employee benefits more effectively.

If you’re ready to explore a more modern approach to benefits management, BIS Benefits is here to help. Let’s discuss how we can integrate technology into your benefits administration for a smoother, more efficient process.

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HDHPs: How High Deductible Health Plans Can Save Money for Employers and Employees

by Drew Holley • 6 January 2025

High Deductible Health Plans (HDHPs) are transforming how employers and employees manage healthcare costs. By offering lower premiums and pairing seamlessly with Health Savings Accounts (HSAs) , HDHPs provide a strategic way to save money while maintaining access to quality healthcare. In this article, we’ll explore how HDHPs work, their benefits for employers and employees, and how to maximize their potential. To learn more about the benefits of HDHPs and related options, visit our Group Benefits page . What Are HDHPs? HDHPs are health insurance plans characterized by higher deductibles and lower monthly premiums. These plans encourage smarter healthcare spending, as individuals must pay for medical expenses out-of-pocket until their deductible is met. A significant advantage of HDHPs is their compatibility with HSAs. HSAs allow employees to save pre-tax dollars for qualified medical expenses, reducing taxable income and providing a long-term financial safety net. Unlike Flexible Spending Accounts (FSAs), HSA funds roll over year after year, making them an ideal savings tool. To better understand the differences between HSAs and FSAs, check out our detailed guides on Health Savings Accounts and Flexible Spending Accounts . The Employer Advantage: Cost Savings and Competitive Benefits Employers benefit significantly from HDHPs because they reduce overall premium costs while providing employees with greater flexibility. These plans can be part of a larger strategy to attract and retain top talent, especially when paired with proper education about HSAs. Offering HDHPs demonstrates a commitment to cost-effective, forward-thinking benefits management. Businesses can tailor these plans to align with workforce needs, ensuring employees feel supported while keeping costs under control. For help designing a comprehensive benefits package, visit our Group Benefits page for insights on tailoring solutions for your team. The Employee Advantage: Affordable and Flexible Coverage For employees, the main draw of HDHPs is their affordability. With lower premiums, employees can save on monthly healthcare costs while taking advantage of HSAs to manage out-of-pocket expenses. HSAs offer employees tax savings, flexibility, and long-term benefits, making them an excellent choice for those planning for future healthcare needs. This is especially valuable for individuals and families who don’t anticipate frequent medical expenses but want to ensure coverage for unexpected costs. Learn how to maximize your savings with our guide to Health Savings Accounts , a vital companion to any HDHP. Key Differences: HSAs vs. FSAs While both HSAs and FSAs offer tax advantages, they differ significantly in how funds are managed. HSAs allow for funds to roll over indefinitely and are owned by the employee, even if they change jobs. FSAs, on the other hand, are subject to the "use it or lose it" rule, meaning unspent funds may be forfeited at the end of the year. Employees using FSAs should familiarize themselves with rollover and grace period options to avoid losing money. To better understand how these accounts compare, check out our Flexible Spending Accounts overview . Industry Trends: HDHPs Are Gaining Momentum HDHPs are increasingly popular across various industries, from technology to manufacturing. Businesses see these plans as a way to manage rising healthcare costs while still offering competitive benefits. As employers look for cost-effective solutions, HDHPs stand out as a forward-thinking option that balances affordability with quality. Pairing HDHPs with educational resources ensures employees feel confident in navigating their healthcare choices. Key Takeaways For Employers: HDHPs lower premium costs while providing flexibility for employees. For Employees: When paired with HSAs, HDHPs offer significant tax advantages and long-term savings opportunities. For Everyone: Understanding the differences between HSAs and FSAs is essential for making informed benefits decisions. Whether you’re an employer or employee, HDHPs can be a game-changer for managing healthcare costs. To explore how these plans fit into your benefits strategy, visit our pages on Group Benefits , Health Savings Accounts , and Flexible Spending Accounts .

Drew Holley and Jessie Couch Discussing HSA and FSA

FSA vs HSA | Which One is Best for your Georgia Employees?

by Drew Holley • 12 December 2024

Use It or Lose It? Demystifying FSAs and HSAs Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are popular options for managing healthcare expenses while enjoying some tax benefits. However, these two accounts differ significantly in how unused funds are handled at the end of the year. This difference can impact your financial planning and overall healthcare strategy. In this article, we'll delve into the "use it or lose it" concept, explore how it applies to FSAs, and compare it with HSAs, highlighting why it's important to understand these rules when making your benefits choices. For more information on HSAs and FSAs, watch the full episode of the BIS Podcast here or below. FSAs and the "Use It or Lose It" Rule FSAs have traditionally been governed by a "use it or lose it" rule. This means that any unspent funds in your account at the end of the year would be forfeited. This requirement made it crucial for employees to accurately estimate their healthcare costs and spend all allocated FSA funds before the year ended. However, since the introduction of the Affordable Care Act (ACA), things have changed. Today, many employers offer more flexibility with FSAs. Thanks to the ACA, employers may now allow employees to carry over a limited amount of unspent funds from one year to the next—originally $500, now adjusted for inflation to about $650. Alternatively, some employers may offer a grace period of up to two and a half months after the end of the plan year to use any remaining funds. It’s important to know what rules apply to your FSA so that you don’t leave any money on the table. To learn more about maximizing your benefits options, check out our guide on employee benefits strategy . HSAs: A Different Story Unlike FSAs, HSAs do not follow the "use it or lose it" rule. Funds contributed to an HSA remain in the account year after year, regardless of whether or not you use them. This is one of the key benefits of an HSA—you can build up savings over time to cover future medical expenses. Plus, the funds in an HSA are portable, meaning you take them with you if you change jobs or retire. This makes HSAs a valuable tool for long-term healthcare planning. If you're considering switching to a High Deductible Health Plan (HDHP) to become eligible for an HSA, it’s important to weigh the pros and cons. For more information about HDHPs and their compatibility with HSAs, check out our Health Savings Account service page . Making the Most of FSAs and HSAs Whether you choose an FSA or an HSA, it’s important to understand how to make the most of these accounts. For FSAs, knowing your employer's specific rules about rollover and grace periods can help you avoid losing funds. For HSAs, the focus should be on maximizing contributions, as the funds will continue to grow tax-free, providing a cushion for future medical needs. Both FSAs and HSAs can be used for a wide range of eligible expenses, including medical, dental, and vision care. If you want a comprehensive overview of your coverage options, our group health insurance page is a great resource. Additionally, if you work in a specialized industry like construction or technology, it's beneficial to explore options that are tailored to your needs. Industries like construction and technology have unique challenges that may impact the type of coverage you choose, including how you use tax-advantaged accounts like FSAs and HSAs. Key Takeaways About FSAs, HSAs, and the "Use It Or Lose It" Rule: FSAs : Historically governed by a "use it or lose it" rule, thanks to the ACA, employers may now allow employees to carry over a limited amount of unspent funds from one year to the next—originally $500, now adjusted for inflation to about $650. Be sure to understand your employer's policies. HSAs : Funds roll over year after year and are portable. HSAs offer significant long-term savings opportunities, particularly for those on HDHPs. Plan Carefully : Knowing how these accounts work can save you money and help you better prepare for healthcare costs now and in the future. To get more insights into how you can make the most of your employee benefits, visit our resources page and discover helpful tools to make informed decisions for yourself and your family.