Benefits Consultants Key Terms

Knowing key terms when considering hiring a benefits consultant is a must

By Ann Starr

Benefits consultants are almost a necessity if you don’t have much knowledge about the complexities of employee benefits. They can help simplify the jargon and minimize any confusion you might have about what types of benefits you should offer your employees. This field is constantly evolving, so even if you already offer benefits to your employees it might be a good idea to have a benefits consultant review your current offerings so that you are sure you have the most cost-effective programs in place for your business.

HIPPA

HIPPA or the Health Insurance Portability and Accountability Act is known most commonly as the law that helps people keep their information private. It also protects workers from losing their health benefits when they change or lose their job. A benefits consultant can help you determine the processes to ensure this law is followed in your organization.
Try: For some frequently asked questions and answers check out the Department of Health and Human Services.

Flexible spending accounts

A flexible spending account is a financial account that can be set up by an employer and that has some tax advantages for the employee. A benefits consultant can help you set up one of these accounts so that employees are able to set aside a portion of their earnings, before taxes, to pay for qualified expenses.
Try: There are some important rules you need to be aware of when you offer flexible spending accounts and you can them at Kent State University.

COBRA

COBRA or the Consolidated Omnibus Budget Reconciliation Act mandates, among other things, that employees will be permitted to continue their health insurance coverage after leaving employment. A benefits consultant can help you understand the complexities of this law.
Try: The Department of Labor offers a lot of in-depth information on this law and you can find it here: U.S. Department of Labor.

HMO

An HMO or health maintenance organization is a type of health care organization that tries to improve the quality of care and reduce the costs of providing health benefits by monitoring and managing these programs. Within an HMO, doctors and other professionals agree to treat patients following the guidelines and limits agreed to. There are innumerable HMOs now in existence and a benefits consultant can help you find the best one for your business.
Try: Need more detail? You can find all you need to know at wiseGEEK.

Self-funded plans

A self-funded plan is a health and disability insurance plan that an employer offers to its employees and for which it pays the claims. There are some obvious risks that a benefits consultant can help you consider if you are thinking about implementing one of these plans in your organization.
Try: Administrative Enterprises offers a good overview of self-funded and employer funded insurance plans.

Long term care

Long term care is an assortment of services for people who are elderly, have a chronic illness or disability and who cannot care for themselves. Typically the services are custodial such as assisting with tasks like cooking, bathing, using the bathroom and dressing. Usually not considered a standard element in an employer sponsored benefits program, a benefits consultant can help identify insurance companies that provide this type of care.
Try: AARP has some key issues to consider for this benefit.