The current health insurance environment for small businesses is complex, especially with the advent of the Affordable Care Act.
To sift through the options, and help ensure they’re making the right decision, many small businesses turn to experts for help. Essentially, they outsource the selection, management, and administration of their health insurance plan.
Some of these third-party administrators are individual consultants or insurance professionals with specialized knowledge of health insurance plans, including eligibility requirements, enrollments, claims processing, etc. (Just Google “health insurance administrator” and your zip code, and you’ll find multiple such providers in your area.) Other administrators are companies that can also offer more wide-ranging HR and benefits services. These may be larger, national firms that will not only manage your health benefits, but your payroll, disability, and other coverage, too.
Are the benefits of outsourcing health insurance administration, such as, employee satisfaction, time savings, and variable fees, worth the cost? Only you can answer that question after learning more and perhaps consulting with some experts.