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Benefits platform exceptions can add $33,750 in annual labor costs
The analysis estimates 250 monthly exceptions for a benefits program with 5,000 active accounts, requiring 750 hours of staff time per year to resolve.
Insurance Business reports that benefits platform failures such as eligibility disputes, reimbursement requests, and reconciliation errors can create ongoing labor costs that do not appear on vendor invoices.
The article cites a PYMNTS Intelligence model developed with SoFi Tech Solutions, assuming 5,000 active accounts and that 5% require manual attention each month, which translates to 250 exceptions monthly.
At 15 minutes per exception, the model estimates 62.5 staff hours per month and 750 hours over a year, valuing that capacity at about $33,750 annually using a loaded labor cost of $45 an hour.
The outlet adds that the numbers are illustrative and organizations should replace the model inputs with their own exception volumes and usage rates rather than treat the assumptions as an industry benchmark.