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.
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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.