The role of your business’s firm contact person, often called the plan administrator, is crucial for managing group benefits effectively. This person acts as a liaison between the insurance provider and the company’s employees, ensuring the group plan runs smoothly. Group benefits are a significant part of many employees’ compensation packages, influencing both retention and satisfaction.
The responsibilities of the firm contact person can vary depending on the size and complexity of the company’s benefits program. Some businesses may offer a single plan for all employees, while others may have more complex arrangements. For example, plans could differ based on employee classes or include flexible options, such as flexwell benefits.
Core Responsibilities of Firm Contact are
Enrollment and Eligibility
A key responsibility of the firm’s contact person is to manage the enrollment for new employees and oversee eligibility requirements. This includes verifying eligibility, processing enrollment forms, and submitting information promptly. It is crucial to ensure all submissions are complete and accurate.
Employees must be enrolled during their 31-day eligibility period. If they miss this window, they become “late applicants.” Late applicants may need to provide medical evidence or pay retroactive premiums. Their coverage could also be reduced or, in some cases, denied entirely.
Updating employee information
The firm’s contact person is responsible for keeping employee information accurate and up-to-date for the benefits program. This includes personal employee details, and new employees and terminations. Maintaining information helps ensure smooth claims processing and keeps the benefits program running effectively.
Providing updated employee information is highly important, especially for benefits based on income such as Short- or Long-Term Disability Insurance. Policies like Life Insurance or Accidental Death & Dismemberment (AD&D) Insurance may be based on a multiple of salary. In these cases, employees may be eligible for increases if coverage as a result of updated income. Therefore, firm contacts should submit updates to employee information promptly and accurately.
Terminating Employees
In addition to enrolling new employees and managing ongoing changes, the firm contact is also responsible for handling employee terminations. The administrator must notify the insurer when an employee is terminated to ensure benefits coverage ends appropriately
If we are not notified , the insurer will continue covering the employee until they are officially removed from the plan. If claims have been paid during this period, the insurer may not be able to retroactively terminate the employee’s coverage.
Recordkeeping
Record keeping is a cornerstone of effective benefit program management, ensuring smooth operations. The administrator maintains records encompassing various facets of the plan, including participant enrollment, contributions, billing, and other pertinent data.
Accurate recordkeeping serves critical functions such as accounting and tax. Maintaining records of employer and employee contributions are essential for tax deductions and financial reporting purposes.
Firm contacts act as the main channel for delivering important information to employees and insurers. This role involves managing communication, enrollment, recordkeeping, and employee education. By handling these tasks effectively, the firm contact supports both the company and its employees. This role is essential for fostering employee satisfaction, engagement, and overall organizational success.
Businesses may want to explore Plan Administrator Liability Coverage (PALC), an optional addition to their General Business Insurance. PALC provides coverage for a range of common administrative errors, often at minimal cost. To learn more about this coverage, businesses should consult their Property and Casualty (P&C) broker for personalized advice.
This blog post is for informational purposes only and should not be considered as professional advice. For guidance specific to your situation, please consult with a qualified insurance advisor.