Employer contributions to a Health Savings Account is a useful way to encourage employees to enroll in a High Deductible Health Plan (HDHP) with an HSA.  If your organization is considering offering an HSA with an employer contribution, it is important that you consider if your benefits administration technology can accommodate the intended contribution strategy.  Exploring the opportunities within your Ben Admin will inform how your organization will handle contributions for new hires, qualifying life events, and annual renewal enrollments.

BTR has vast experience with employer contribution strategies that work well with Ben Admin technology – here are a few strategies that have proven to be successful.

• Per Pay Contributions – This is typically the easiest strategy and reduces concerns with pro-rating employer contributions for new hires during the year.
• Monthly/Quarterly Employer Contributions – This strategy is ideal for HSA changes that are effective on the 1st of the month/quarter. Typically, the employee receives the employer contribution on the effective date occurring after the enrollment is completed. BTR recommends verifying that the ben admin system will support this strategy, since it is likely a different schedule than employees’ payroll schedules.
• One-Time Annual Contributions – This strategy works great at Annual Enrollment because it funds employees’ HSA accounts “up front” at the beginning of the plan year. However, it will be important to consider how your technology will pro-rate employer contributions for new hires and any mid-year adjustments.
• Employer-Match Per Pay Contributions – Typically, with this strategy, the employer matches a certain percentage of the employee contribution, up to a maximum amount. Not all systems can handle a per-pay employer match strategy, so it is recommended that employers check with the Ben Admin service team before implementing this strategy.
• Tier-based Contributions – An example of this strategy could include a $1,200 annual employer contribution for single HDHP coverage and a $2,400 annual employer contribution for family HDHP coverage. In this scenario, employers will want to consider how to handle the funding mechanisms (monthly vs. annually) for employees who have a life event during the year which could result in moving HDHP tiers.
• Wellness-based Contributions – This strategy entices employees to participate in wellness endeavors in order to earn employer contributions to their HSA. This is usually based on external factors, such as tobacco status or fitness event participation, so employers should verify that the ben admin technology can manage these factors in order to successfully execute employer contributions.

Employers looking to offer an employer-funded HSA plan should connect with the Ben Admin technology service team, as well as any other impacted systems, to determine if and how the technology will support the strategy. The goal of technology should be to avoid manual workarounds and costly mistakes. BTR is available to support these considerations as well as advise on technology recommendations for HSA Employer Contribution strategies.

If you would like more information, let us know! Email BTRProjects@bentechre.com to connect with our experts.

About the Author

Kristina Chavez supports BTR as the Business Development Manager, focusing on new opportunities and business development for the BTR Extend division. Kristina enjoys working directly with employers, as well as benefit advisors, to strategize on their technology needs around employee benefits.

Vendors can play a significant role in the success of business objectives. Vendors help drive new growth, ensuring the organization is profitable, which is why effectively managing relationships with the vendor world is crucial. When vendor management is executed successfully, companies will benefit by staying abreast of industry trends, intel, and standards.

Managing Vendor Relationships

The key to any successful relationship is understanding the expectations of the parties involved. Knowing each participant’s role and clearly defining responsibilities for each party is an important element of managing expectations.

Frequent communication between Vendors and HR/business leaders supports the success of ongoing company objectives. Recurring meetings ensure opportunities for questions, problem solving, and decision making, as well as support the overall management of project timelines.

When a vendor relationship is properly managed, the company experience is enhanced. Confidence in a vendor’s team leads to enhanced performance management. Being able to provide constructive feedback and address concerns about client service can increase overall customer satisfaction.

Benefits of Vendor Management

One of the main goals of deploying technology is to improve overall data integrity. Proactive vendor management ensures vendors are thoroughly vetted. Checking for any potential risks that could adversely impact the company supports data integrity and security.

Client satisfaction is greatly improved when vendor relationships are proactively managed. Strengthening vendor relationships can streamline the selection process and improve efficiencies.

Sharing information is huge benefit of a strong vendor relationship. Vendors in the market can provide significant insight to their data security standards, functionality, pricing structures, and initiatives to help business leaders strategize more effectively.

Fostering vendor relationships requires commitment and consistency to ensure the needs of all parties are met. It is important to work with collaborative, customer-focused vendors that drive towards service excellence. A vendor relationship manager can grow that partnership rapport. When managed effectively, a successful vendor relationship can bring forth a strategic alliance to achieve a high level of success together.

If your organization would like to consult with BTR about your Vendor strategy, please email your inquiry to BTRProjects@bentechre.com.

About the Author

Therese Tomasek supports BTR as the Vendor Relationship Manager, focusing on developing and growing BTR’s partner relationships. Therese brings to the team several years of experience in HR, focusing on process improvement, talent acquisition, and contingent workforce management.

The big takeaway from our 2021 BTR Summit conference was: “‘free’ is the new F-word.” Each year, we host brokers, vendors, and other stakeholders in the HR tech space to come together and explore market issues and trends. It was during our 2021 Summit that our attendees were in unanimous agreement that “free” is never “free” and there’s a cost to good HR technology.

“Free” can come at a high cost. Free software is typically underwhelming with many limitations, requiring more manual effort which is inefficient. This type of “free” is not the kind of “free” employers need. Employers should consider the cost associated with lost productivity for poor-performing software as well as manual tasks to make the software perform as desired.

Your Vendor is Your Partner

Careful selection and familiarization of HR tech partners help employers to avoid the pitfalls of free software. I don’t use the word “partner” lightly; HR technology should be a true partner to the organization who understands the business goals and initiatives, providing guidance and support to help business leaders accomplish both.

A true HR Technology partner will carry many of these characteristics:

• Won’t sell you services you don’t need
• Won’t dilute customer support—regardless of cost or discounts for their software.
• Will tell you things you may not want to hear.
  • For example, a partner may push back an implementation timeline because they are looking out for your interests and know that your reputation with your employees is essential to your brand.
• Will do it right rather than doing it fast
• Will outline what you can accomplish within the timeline
• Will help prioritize your HR technology and benefit administration goals which improves confidence with the approach and roadmap.
• Will plan to Go Live on time, recognizing that hope is not a strategy.

Employers should also consider the service model of their partner. BTR generally advises against the “service tiers” model because we believe every organization should get the best service regardless of the invoice’s bottom figure.

Expertise to Support Your Business Goals

Employers also need to recognize that each organization has unique needs that may vary from their industry counterparts. A tailored solution is typically going to out-perform a “plug & play” software when it comes to meeting business objectives. Business leaders can leverage a team with technology knowledge & expertise to design a strategically-tailored solution.

Help with Your HR Tech Strategy

The “you get what you pay for” principle applies to most HR technology products and services but is especially true with benefits administration. The good news is that employer organizations are becoming smarter and more sophisticated buyers. HR leaders increasingly understand that purchasing the right technology from the right partner saves time and money over the long term (and oftentimes in the short run, too). Still, the HR tech sector is large and complex. Even experienced buyers struggle to stay on top of the market.

Our team focuses on HR technology solutions every day. We know the market and work with insurance brokers to help employers achieve their business goals through best-fit HR technology solutions and vendor partnerships. The BTR team is happy to assist with your organization’s HR technology strategy—email BTRProjects@bentechre.com to get started!

About the Author

Kate Taylor is BTRs President & COO, she supports BTR’s directors and managers with operational initiatives, team development, and strategic growth.  Kate has successfully developed and led the BTR benefits administration division since its inception in 2010.  She has held nearly every role and has worked exclusively with benefits administration for over 12 years.

It’s no secret that employers need more these days. With ever-changing workforce challenges, employers need more support, more time, and more tools. Our merger with iBenefit Communication is designed to meet the need of employers looking for more.

Many have congratulated and joined us in celebration of our new partnership, which we appreciate. We are excited to expand these service offerings to our clients in a big way. This opportunity will allow us to combine our HR Tech experience with personalized enrollment assistance from a cohesive team that delivers concierge-level service and support. It really is a win/win for employers.

Health benefits are becoming increasingly complex, and we feel it’s important for employees to understand the benefits available to them. Elements such as easy access to information and benefits counselors equip employers for success in their benefits strategy. With The Great Resignation affecting just about every industry, employers are searching for an “easy button” to execute their vision. This partnership brings us the ability to immediately counsel new hires, onboard an acquisition, or support any number of challenges an employer may be facing.

We really believe this merger between BTR and iBenefit will bring enhanced solutions to the market in a more integrated way. In the near future, we will be working on even more innovative solutions that will be unique in our industry – stay tuned!

If your organization is looking for support with HR technology or enrollment strategies, please email us at BTRProjects@bentechre.com.

BTR was founded in 2008 by Jamie and Terry Hawkins. The Company, headquartered in Tampa, FL, is a leading HR Technology consultancy and deployment firm. BTR supports approximately 400 employer groups across the nation and works with market leading insurance brokers and consultants.
Based in Charlotte, NC, iBenefit provides employers with engagement, retention, and enrollment services. iBenefit is a portfolio company of MSouth Equity Partners with offices in Atlanta, GA. and Nashville, TN.

Combining BTR’s HR technology consultation and deployment services with the personal enrollment and communication services of iBenefit is a win/win for clients and broker partners. Health Benefits are becoming increasingly complex and employers are looking for better-enhanced and more integrated employee communication and enrollment solutions.

“This merger will expand the service offerings to our clients in a big way. They are asking for more support in the area iBenefit specializes in. This opportunity will allow us to combine our HR Tech experience with personalized enrollment assistance from a cohesive team that delivers concierge level service and support. This transaction allows BTR to retain its stature while having the resources to focus on innovative service offerings for our customers,” said Jamie Hawkins, CEO of BTR.

“This merger helps take iBenefit to our next phase of growth with the delivery of a broad portfolio of products and services that brokers, consultants and their clients seek everyday: employee engagement, retention, and best in class payroll and benefit administration solutions,” said Phillip Goodrum, CEO & Founder, of iBenefit.

Brentwood Capital Advisors LLC served as BTR’s exclusive financial advisor on this transaction.