Insurers, brokers and workers may have an incentive to team up to get U.S. employers to share benefits administration chores with outside companies: Employers that outsource tend to offer much better benefits.
Guardian Life Insurance Company of America has published data supporting that possibility in a summary of results from an online survey of 1,001 U.S. benefits decision makers. All of the participants were at U.S. businesses with at least five full-time employees.
About 16 percent of all participating employers outsource as much responsibility for benefits administration as possible, and 15 percent handle all administration responsibilities internally.
In practice, Guardian found, the do-it-yourself (DIY) employers tend offer major medical coverage, and that’s about it.