New Eastbridge study shows billing flexibility is key customer expectation in voluntary market

AVON, CONNECTICUT, USA (January 16, 2025)

Multiple billing frequences, summary and consolidated bills and third-party capabilities are common carrier offerings

Voluntary carriers offer at least five different billing frequencies to their customers, and more than half can accommodate multiple frequencies within a single account, according to new research from Eastbridge Consulting Group. Eastbridge’s Billing Practices of Voluntary Carriers Spotlight™ Report shows it’s also common for carriers to offer summary bills, single consolidated bills and third-party billing capabilities.

The study also says only about half of carriers that offer customers a self-billing option receive a regular eligibility file from the employer, third-party administrator or benefit administration platform. Carriers use this information to verify coverage when covered employees file claims for products included on the file, rather than verifying coverage with the employer.

“Claims processing is likely to be delayed when the carrier’s claims team has to verify coverage with employers,” said Ginger Bates, Eastbridge director of research. “The best way carriers can improve claims processing for self-billed customers is to require a regular eligibility file. It keeps the billing process simple for customers and allows carriers to quickly verify eligibility needed to process and pay claims — ultimately creating a better customer experience.”

The Billing Practices of Voluntary Carriers Spotlight™ Report examines the best practices, challenges and trends of carriers in the voluntary/worksite market based on data collected in September and October 2024. The report covers topics including billing and payment options, processes for changes and discrepancies, self-administered billing practices, employee-direct billing services, and future trends. Voluntary carriers can use this information to evaluate their own billing practices and plan their future strategies to best meet customers’ needs and become more competitive.

Other key findings in the report include:

• Carriers offer employers multiple ways to pay their bills, but most employers still pay by paper check.
• About half of carriers typically still pay employees’ claims even when their employer is past due on the account.
• Most carriers will direct-bill employees who leave their employer so they can keep their voluntary coverage.