Voluntary Benefits
Published by Shaun Urista on January 22nd, 2024
After spending years working in the voluntary industry, I’ve come to understand that employers and policyholders value simplifying processes and improving high-quality service. What many do not realize is that with ACH billing for voluntary benefits, you get all that and more. ACH offers a wealth of benefits—redefining how businesses and their employees manage their benefits.
In this blog, I’ll explore many aspects of ACH, and shed light on how brokers and others in the voluntary space can utilize ACH to bring added value to the individuals and businesses they serve with their solutions. I’ll discuss:
ACH is an electronic fund transfer between banks and credit unions made across the Automated Clearing House (ACH) network1. While the definition alone doesn’t add much context, I’ll try to break it down a bit further. Instead of dealing with paper checks, ACH transactions operate by electronically shifting funds between banks and other financial institutions to provide an efficient, and oftentimes, a more secure way for businesses and individuals to transfer their money. These transactions can include direct deposits for paychecks, or debits for routine payments like life insurance, mortgages, car loans, etc.
ACH offers employers the ability to take a step back from the voluntary benefits billing process and leave it entirely between the carrier and the employee.
With ACH, the carrier is setting up the ACH payments directly with the employee, which means that for employers, all that process—finding out how much to deduct, deducting it, and sending it over to the carrier—is eliminated. That’s not to mention the difficulty of managing billing changes or dealing with any missed payments. ACH helps rid employers of those pesky billing headaches, and brokers strengthen their broker-client relationship by saving the employer time and resources. It’s billing, simplified.
Like businesses, employees also benefit from the ability to pay their benefits carrier directly with ACH billing. ACH is a hassle-free, user-friendly way to manage their financial transactions, and is likely a form of payment they’re already using for other common bills, like a mortgage or car payment. Just like those bills, they can simply set it and forget it without worry. But the benefits of ACH for employees don’t stop there.
Because the interaction with ACH is directly between the employee and the insurance provider—and if your carrier allows it, like Trustmark—employees don’t have to worry about losing their voluntary benefits should they retire or leave their current job for another. At Trustmark, we often see employees lose their coverage because they leave their jobs and don’t realize they can take it with them. ACH payments can continue as long the information provided is up to date, making it easier for employees to keep their benefits for as long as they choose.
Brokers that use ACH billing processes—like those from Trustmark—can easily eliminate those pain points while still offering high-quality benefits for employees. From greater portability for employees to relieving HR and finance departments of tedious and wasteful billing responsibilities, offering ACH billing should be the clear and obvious choice for brokers when trying to solve administrative billing pain points. But that’s not even the best part. This helps brokers forge more stable, lasting relationships with employers.
Remember when I mentioned that employees can keep their benefits if they leave their jobs or retire? That means there’s a higher likelihood of employees keeping their benefits, which means a higher likelihood of brokers collecting commissions on those longer-lasting policies.
So not only is ACH the most convenient and efficient billing option for businesses to offer voluntary benefits without experiencing any billing headaches, but it’s also the easiest way for brokers to generate more profitable, longer-lasting relationships with clients while assuring that employees keep the protection they need. That’s the beauty of ACH—it’s truly a win-win solution for everyone.
1: What is ACH? Consumer Financial Protection Bureau. 2020.
2: Brokers and Voluntary Benefits - The Competition Intensifies. Eastbridge Consulting Group. 2018.
Trustmark® is a registered trademark of Trustmark Insurance Company. Benefits, definitions, exclusions and limitations, and product availability may vary by state. Underwritten by Trustmark Insurance Company.
In this blog, I’ll explore many aspects of ACH, and shed light on how brokers and others in the voluntary space can utilize ACH to bring added value to the individuals and businesses they serve with their solutions. I’ll discuss:
- What is ACH?
- What are the benefits of ACH for businesses?
- What are the benefits of ACH for employees?
- How do these benefits affect voluntary brokers?
What is ACH?
ACH is an electronic fund transfer between banks and credit unions made across the Automated Clearing House (ACH) network1. While the definition alone doesn’t add much context, I’ll try to break it down a bit further. Instead of dealing with paper checks, ACH transactions operate by electronically shifting funds between banks and other financial institutions to provide an efficient, and oftentimes, a more secure way for businesses and individuals to transfer their money. These transactions can include direct deposits for paychecks, or debits for routine payments like life insurance, mortgages, car loans, etc.
What are the benefits of ACH for employers?
As a broker, the last thing you want is to hinder your relationship with an employer, and when billing challenges create problems for HR/billing teams, employers might question bringing your solutions to their employees altogether—just to avoid the headache. However, using ACH for billing can eliminate that problem before it begins.ACH offers employers the ability to take a step back from the voluntary benefits billing process and leave it entirely between the carrier and the employee.
With ACH, the carrier is setting up the ACH payments directly with the employee, which means that for employers, all that process—finding out how much to deduct, deducting it, and sending it over to the carrier—is eliminated. That’s not to mention the difficulty of managing billing changes or dealing with any missed payments. ACH helps rid employers of those pesky billing headaches, and brokers strengthen their broker-client relationship by saving the employer time and resources. It’s billing, simplified.
What are the benefits of ACH for employees?
Like businesses, employees also benefit from the ability to pay their benefits carrier directly with ACH billing. ACH is a hassle-free, user-friendly way to manage their financial transactions, and is likely a form of payment they’re already using for other common bills, like a mortgage or car payment. Just like those bills, they can simply set it and forget it without worry. But the benefits of ACH for employees don’t stop there.
Because the interaction with ACH is directly between the employee and the insurance provider—and if your carrier allows it, like Trustmark—employees don’t have to worry about losing their voluntary benefits should they retire or leave their current job for another. At Trustmark, we often see employees lose their coverage because they leave their jobs and don’t realize they can take it with them. ACH payments can continue as long the information provided is up to date, making it easier for employees to keep their benefits for as long as they choose.
How do these benefits affect voluntary brokers?
It should come as no surprise that the majority of brokers list “billing problems” as the number one administrative pain point2.Brokers that use ACH billing processes—like those from Trustmark—can easily eliminate those pain points while still offering high-quality benefits for employees. From greater portability for employees to relieving HR and finance departments of tedious and wasteful billing responsibilities, offering ACH billing should be the clear and obvious choice for brokers when trying to solve administrative billing pain points. But that’s not even the best part. This helps brokers forge more stable, lasting relationships with employers.
Remember when I mentioned that employees can keep their benefits if they leave their jobs or retire? That means there’s a higher likelihood of employees keeping their benefits, which means a higher likelihood of brokers collecting commissions on those longer-lasting policies.
So not only is ACH the most convenient and efficient billing option for businesses to offer voluntary benefits without experiencing any billing headaches, but it’s also the easiest way for brokers to generate more profitable, longer-lasting relationships with clients while assuring that employees keep the protection they need. That’s the beauty of ACH—it’s truly a win-win solution for everyone.
1: What is ACH? Consumer Financial Protection Bureau. 2020.
2: Brokers and Voluntary Benefits - The Competition Intensifies. Eastbridge Consulting Group. 2018.
Trustmark® is a registered trademark of Trustmark Insurance Company. Benefits, definitions, exclusions and limitations, and product availability may vary by state. Underwritten by Trustmark Insurance Company.
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Written by Shaun Urista
Shaun joined Trustmark in 2011 and is responsible for developing and managing voluntary benefits distribution in the South Central Texas region as well as leading and mentoring his regional sales team in the North Texas, Oklahoma, South Texas and Gulf Coast regions. He has more than 19 years of experience in the employee benefits marketplace.
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