How to choose a benefits administrator

If your organization offers health employee benefits, using an accurate benefits administration tool can help you stay on top of compliance requirements. Benefits administrators make it easy for employees to enroll in their perks by providing your organization with the training and resources it needs to keep its benefits running smoothly.

A benefits administrator is a human resources professional, third-party administrator, or employee benefits administration software that assists in keeping workers and business owners informed about their employee benefit programs.

Choosing the right benefits plan administrator for your organization’s needs is essential for a good employee experience. Otherwise, your employees may decide not to use their benefit plans, affecting employee engagement and turnover.

In this article, we’ll walk through what to look for in a health benefits administrator and how the right solution can support your organization.

In this blog post, you'll learn:

• The key responsibilities of benefits administrators.
• How benefits administration software can save time and ensure compliance.
• Why you should consider PeopleKeep by Remodel Health's benefits administration platform.

What are the responsibilities of benefits administrators?

Benefits administrators have many responsibilities, from evaluating your organization's current benefits offerings to managing its perks.

Responsibilities can include:

• Educating employees on the benefits you offer
• Helping employees enroll in their health insurance plans
• Reviewing and updating benefits information and compliance documents

A benefits administrator needs good analytical skills and must stay on top of compliance requirements and changes. If your administrator has a lot on their plate or you don't have one yet, software can help.

Why choose health benefits administration software?

The benefits administration industry has been moving into the software space for years. Benefits administration software gives you and your employees more access to your perks wherever you are, promoting a better employee experience.

Choosing an automated system for your company's benefits packages can help you save time and money compared to self-administering them or hiring a benefits administrator.

Software administration of employee benefits programs makes you more efficient by enabling quick access to employee records and data. It also allows employees to view information about their perks at a glance. Best of all, reliable benefits administrators will help you comply with current regulations.

Technology considerations

When choosing an administrator for competitive benefits, you'll likely consider a software solution for ease of use and accessibility. With so many HR tech platforms available, the features and usability of the software have become top considerations.

This section will cover the areas you must consider before selecting a benefits software program.

Automated benefits compliance

Federal law and IRS codes can impose strict regulations on employers depending on the type of perks you want to offer. This is especially true for retirement plans and health benefits like health reimbursement arrangements (HRAs).

An HRA is an alternative to a traditional group health insurance plan. It's an IRS-approved, employer-sponsored health benefit that allows participants to receive reimbursements for various out-of-pocket healthcare expenses and certain health insurance premiums.

Depending on how you design your benefit and which type of HRA you offer, you can reimburse employees for all items outlined in IRS Publication 502 and the CARES Act.

For example, an HRA administration software should have features like:

• Automated creation of a written legal plan and summary plan description (SPD)
• A way to collect and store employees’ electronic signatures
• Privacy features to ensure protected health information (PHI) is secure
• Employee Retirement Income Security Act (ERISA) compliance
• Documentation for appeal requirements, notifications, and procedures
• Continued healthcare coverage of dependent children up to age 26
• Automated notice requirements for employees’ eligibility and annual allowances

Without the required features or vendor support to ensure regulatory compliance with federal laws, your company could run afoul of tax rules and be subject to hefty penalties. Fortunately, the right automatic software takes the guesswork out of managing common employee benefits.

Updates and reliability

When choosing an employee benefits platform, you'll need to consider the reliability of the software. While this information may not be immediately available, reviews from other organizations can help you determine if the platform can handle high transaction volumes during peak seasons, such as during Open Enrollment or benefit renewals.

Ease of use

As an employer or HR professional, you likely have dozens of tasks on your to-do list at any given moment. The last thing you want to deal with is complex software.

When choosing a software vendor, you'll also want to consider the platform's usability. You can usually gauge this from software demos and by asking questions during the sales process. Your employees will expect software that's intuitive, easy to navigate, and free of jargon or terminology that isn't adequately defined.

Tools, features, and resources

Whether you're looking for a health benefits administrator or benefits administration software, your administration tool should also include resources and tools that help your employees use and manage their perks.

Employee features and resources to look for include:

• An employee welcome letter and other communications
• Online access for eligible employees to check their perks and allowances
• Cloud-based document storage

Depending on the employee benefits you want to offer, there might be additional features and resources you need.

HRA administration features

Many tools and resources can help when offering an HRA to your employees.

HRA software features can include the following:

• Resources to help employees decide which individual health plans to purchase, such as one-on-one advisements, learning materials, or filters
• Health savings account (HSA) compatibility
• A simple way for employees to make reimbursement requests and upload required documentation, such as receipts
• A way for employees to track reimbursements over time
• Cloud-based account access for employers and employees
• Real-time access to accounting information for employers
• A way to send an automatic notice of process claims and reimbursement decisions to employees
• Online, automatic annual renewal
• Employee benefit training and customer service
• Attestation through SMS

Because the entire purpose of offering an HRA is to provide employees with flexible, personalized health benefits, you want to make it easy for them to take advantage of their perks. With the right HRA administration software, your employees will know where to choose a policy and how to request reimbursements.

You'll also want to choose an HRA service provider with the knowledge, organizational skills, and expertise to help guide you through offering your benefit.

While an HRA is less wieldy to administer than a traditional group health insurance plan, it's not without a learning curve. A good administrative tool will give your plan administrator the training and ongoing support needed to keep your HRA compliant and functioning smoothly.

Software training and support

When selecting a reliable benefits administrator, ask how much training or support you and your employees will receive for the software platform. See if the administrator can provide software demos, videos, or other materials to assist your HR professionals and employees in navigating the platform.

Additionally, see if your plan includes ongoing support if you encounter any challenges while using the software.

Choosing a benefits administrator that provides training and support throughout the process will make your employees more likely to use their perks. This allows your organization to retain employees better and improve worker satisfaction.

Team up with PeopleKeep by Remodel Health

As an industry leader with decades in the benefits space, PeopleKeep by Remodel Health helps small and midsize businesses simplify benefits administration through HRAs.

With PeopleKeep, you can offer:

• The individual coverage HRA (ICHRA): The ICHRA is for employers of all sizes. It's the most flexible HRA available. With an ICHRA, you can offer employees as much as you want in allowances since there are no contribution limits. You can also vary allowances by employee class, age, and family size.
• The qualified small employer HRA (QSEHRA): The QSEHRA is only for small employers with fewer than 50 full-time equivalent employees (FTEs). The IRS sets annual contribution limits for the QSEHRA. You can customize allowances by age and family size, but not employee class.

No matter which HRA you choose, our user-friendly software makes it easy to offer health benefits without the administrative hassle.

We simplify the process by:

• Building a benefits strategy that fits your size and budget
• Preparing and maintaining legal plan documents
• Reviewing employee reimbursement requests to ensure compliance
• Protecting confidential health information and storing documentation securely
• Providing award-winning customer support

Plus, we simplify the shopping experience for your employees. Instead of having to work with an insurance carrier or navigate the individual market on their own, they can conveniently shop for a health plan directly from their PeopleKeep dashboard. On top of healthcare coverage, your employees can also shop for ancillary benefits, such as dental and vision insurance.

If you’re a large or enterprise business or a benefits consultant, Remodel Health’s ICHRA+ platform provides additional HRA administration features. With dedicated account managers, in-house enrollment support, and AutoPay for employee premiums, Remodel Health offers the most complete ICHRA service model in the industry.

Conclusion

The right benefits administrator or software for your organization will save you time and stress while making the process easy for employees. With the right tool, administering your perks can be a breeze.

For a simple and compliant way to administer your current benefits, consider PeopleKeep by Remodel Health. Our personalized benefits administration platforms make it easy to set up and manage HRAs in minutes each month. Schedule a call with an HRA specialist today to get started!

This blog article was originally published on April 19, 2017. It was last updated on March 31, 2026.