Amidst an environment where technology is scaling up operations across different sectors, there is an ongoing strike against technology-savvy Third Party Administrators (TPAs). As per a report published by JDSupra, the issue lies in the changes and advancements, yet the consistency of the government’s random audit processes.
For legal professionals advising corporations and law firms, this specific area of Employee Retirement Income Security Act (ERISA) compliance requires urgent attention. While laws, regulations, and technology have evolved since 1998, the process of handling random audits has remained static. The old means of faxing and emailing information to the agent is still often employed, even though onsite visits have become less frequent.
The unchanged parameters of these audits pose a challenge for those utilizing advanced technology for speedy and efficient operations. TPAs using modern digital platforms might find their sophisticated systems underutilized because the government’s audit framework still sticks to the rules set pre-digitization.
This brings into question whether there’s a need for modernized auditing processes that align with the advanced technology many TPAs now use. For TPAs, this could mean more efficiency and less redundancy in their operations. For the government, a more current audit process could mean accurate, time-efficient audits that make better use of resources.
Prepared by the esteemed ERISA attorney Ary Rosenbaum, the report provides valuable insights into this complex issue and its implications on both government agencies and TPAs. Undoubtedly, it sets the tone for a much-needed dialogue in the intersection of law, business, and technology.