Outsourced administration demands internal controls. Most medium- to large-sized employers in the U.S., including public and private companies, unions, federal government, state government and school boards, have self-insured health plans that:
| . Rely on internal controls of a third-party |
| . Cede policies decisions and procedures to a third-party |
| . Place calculation of large line items of financial statements under control of a third-party |
Fiduciary Responsibility
Selecting an administrator does not relieve you of the responsibilities of accurate claims processing and financial reporting. The issues of internal controls, system updates and modifications, plan design, discounts, medical management, eligibility all ultimately impact your ability to accurately report quarterly and annual expenses. Public companies have the added compliance requirements of Sarbanes-Oxley, as well as, ongoing fiduciary responsibility to employees and shareholders.
Administrator Business Practices
As administrators upgrade and modify business systems and practices, the risks of reporting and processing accuracy issues increase. Your ability to predict expenses and mange costs are impacted by your administrator's business practices.
Administrator Internal Controls
The adequacy of your administrator's internal controls can have major implications to your financial stability.
With HDM's advanced audit tools you can have the essential confidence of knowing how well your administrators are meeting their responsibilities.
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