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How do I administer a Small Business Health Plan?
Home » Small Business » Small Business Health Plan » How do I administer a Small Business Health Plan?In many cases, selecting a small business health plan is the easy part; it is administering it that is difficult. In a small business, you may not have the manpower to devote one employee to this task, so someone will probably be doing it in addition to additional work, which makes it even more difficult to stay on top of all the details of a plan.
The primary issue for a small business health plan administrator is defining and interpreting all the fine print. The administrator acts as the intermediary between the health insurance company and employees, so he needs to understand the details of the policy and be able to communicate them to the employees.
To this end, make sure employees know the answers to the most common plan questions. Which employees will be covered (full-time, part-time, or both)? What about family—can spouses and dependents receive coverage and, if so, at what cost? What benefits does the plan provide and at exactly what cost to the employee? In this area, it is important to clarify gray issues such as maternity care, injuries on the job, and alternative medicine or psychiatric care. Make yourself available to employees to answer any questions they have, and make sure you know where to go to get the answers.
In addition, the health plan administrator is in charge of all the paperwork. Enrollment forms, claim forms, coverage transfer forms, change requests—make sure that none of these forms fall through the literal or figurative cracks. You will also need to keep track of all premium bills and other paperwork regarding the relationship between the company and the insurance provider.
Health coverage is very important to employees, so they are likely going to be especially painstaking when it comes to their health care. Be especially careful, therefore, to monitor an employee’s waiting period and eligibility requirements. Try to streamline any changes to an employee’s policy, such as the addition of a spouse or child to the coverage, and take care to deduct exactly the right amount from an employee’s paycheck to cover their part of the premium.
Small business health plan administrators often end up as jacks-of-all-trades by necessity. If you are in this situation and health plans are not your level of expertise, make sure that you know where to go to ask questions. Become familiar with your contacts with the health insurance provider; you will likely see a lot of them.
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