Key Takeaways
- Benefits invoice audits can catch errors, ensure regulatory compliance, and keep employees healthy and happy.
- Audits help you recognize billing and enrollment mistakes before they become costly for you and your employees.
- Work with a broker like LewerBenefits who provides free benefits enrollment software and support with optional payroll integration, so you have time to dedicate to the rest of your responsibilities.
“What do you mean by ‘auditing benefits invoices’? Does that mean even more paperwork?”
I hear this statement a lot from businesses that offer benefits. And honestly, I get it. No one wants to add more work to an already busy schedule.
However, taking this extra step can catch costly errors, keep your business compliant, and ensure your benefits continue to provide value for your employees.
In fact, benefits invoice auditing is one of the most impactful things you can do for your business. And the good news is that your employee benefits broker can help you with this essential task, so you never have to go it alone.
Let’s take a closer look at how invoice audits can help your bottom line.
1. Recognize costly errors
At a time when costs keep rising, it’s always a good idea to identify and rectify where you might be overspending.
When auditing benefits invoices, you take a deeper look at things like employee and dependent eligibility, enrollment records and carrier invoices, premium rates, and more. You get the whole picture of what you’re spending on benefits against what you’re being charged by insurance carriers and understand exactly what you’re being charged for.
Sometimes carriers make billing mistakes—charging old rates or billing for incorrect benefits. They could also be charging coverage costs for employees who are no longer with the company. These seemingly small errors could cost you thousands of dollars each year if they aren’t caught early!
Benefits audits can help you uncover these mistakes, stopping wasteful spending in its tracks so you can put that money to better use elsewhere in your business.
2. Eliminate compliance guesswork
Are your benefit offerings compliant with government regulations such as the Employee Retirement Income Security Act (ERISA)? How about with the IRS and other governing bodies?
If you’re not sure, it’s time to start auditing your benefits invoices.
As a business owner, especially one that offers benefits, you’re aware of just how many rules and regulations you need to follow to keep your business in good standing. One wrong move could mean costly penalties or legal issues.
Fortunately, regularly reviewing your invoices can help catch errors early and keep you informed of payments and filings related to your compliance obligations, providing added peace of mind.
3. Ensure employee enrollment eligibility
There are many factors that determine whether an employee is eligible for benefits or can change their elections outside of the open enrollment period. With so many moving pieces, it’s easy to see how things can fall through the cracks.
For example, if a terminated employee remains enrolled in benefits, employers may be responsible for premiums that continue to be charged until the issue is identified and corrected.
For new hires and qualified life events, however, most policies allow 30 days for enrollments to be processed retroactively. While employees generally may only be allowed to change benefit elections during open enrollment, certain life events provide exceptions. These events allow employees to make coverage changes during the plan year when certain requirements are met.
Auditing your benefits invoices helps ensure you’re only paying for active employees’ coverage while also keeping an eye on employees with life changes who may qualify to change their elections.
4. Protect employee benefit coverage
Piggybacking on the previous point, regularly auditing benefits invoices ensures all eligible employees are enrolled in the plans they’ve selected, including new hires and eligible dependents. This is vital to prevent coverage gaps and reduce time spent identifying and fixing errors.
It also helps keep employees happy. They know their coverage is active, can confidently use their benefits when they need to, and don’t have to worry about claims being denied for enrollment errors. Reliable, consistent benefits administration helps build trust—and reduces questions and uncomfortable conversations about benefits.
Ready to take a closer look at those invoices?
Benefit invoice audits can seem intimidating and time consuming, but they don’t have to be.
LewerBenefits can help your business stay on top of important compliance-related filings and paperwork. We provide industry leading software, dedicated client advocates and compliance specialists to assist, so you have more time to focus on other areas of your business.
Reach out and let’s get started.
