When an Employer has many different products to offer their employees, and these products are offered through multiple insurance carriers, they may run in to some difficult situations in trying to reconcile their bills. Not all products are "paid as billed." For example, bills for self-administered group products are adjusted between billing periods to account for new hires or terminations. Some Employers require all deductions be combined into a single-slot payroll deduction, which gets complicated when multiple bills are combined with employee-paid or contributory products.
Common remittance (also known as single source billing or Third Party Administration) is a bill paying function which utilizes payroll deductions and streamlines payment of premium. It allows for an Employer to remit premium using only one method of payment, whether it be by check or wire transfer. The payment is then automatically allocated to each carrier for each individual employee by the Common Remitter.
One benefit to using a TPA is that it makes premium payments simple and safe. Using a Common Remitter Service or TPA can increase efficiency for all payroll deducted benefits, reduce data entry, and reduce the need for vendor forms, mailing costs, and report preparations. Chimienti & Associates currently offers services through two TPAs. We also offer eligibility management systems for companies with 250 or more employees that can include common remittance services such as premium tracking and payroll deduction reconciliation against voluntary benefit eligibility records.
Chimienti & Associates has the ability to work with multiple TPAs, in addition to various HR Outsourcing companies used by Employers to assist in their premium collection and payment procedures. Companies are not limited to our current TPA service providers.