Want To Repeal Health Insurance Reform!!! Not Likely

 Some PEO’s Think Healthcare Reform Will Just Disappear

Their are some employee leasing companies and professional employer organizations in the HR outsourcing industry, who act as if the Affordable Care Act won’t actually affect them, or  change the way they  provide small group health insurance and employee benefits. One of the reasons could be, that many of these PEO’s actually believe that the Act’s provisions, and protections will never be enacted. Like waking up from a sweet dream (or horrific nightmare), they remain convinced that the Republicans will take power in 2011, and make it all go away.

I hate to pour cold water on their dreams, but it is time to face reality.

If you still have questions about the Affordable Care Act, any of it’s provisions, and the timeline for implementation, then click on the Link below.

PEO Group Health Insurance Premium Renewal Rates Increase

Professional Employers Experience Double Digit Increases Again

Group health insurance premium renewals are going out and the reports are not encouraging. It’s that time of the year when employee leasing companies and professional employers send small business owners their new health rates for the coming year. Employers across the nation are being told what to expect, and it’s not exactly what they want to hear. Especially now, when the economy is starting to stabilize.

Many of our small business clients who have been relying on their PEO partner to keep their health insurance rates low, are finding out that it’s no longer the case. Business owners with some of America’s best known and largest human resource outsourcing firms, Administaff, ADP Totalsource, and TriNet / Gevity HR have experienced another round of double digit increases. CFO’s and HR managers have complained about increases from Alphastaff HR, another “Top 10” provider. Their clients renew in September, and a few said they received cost masters with 35% rate increases across the board from Aetna.

Bait and Switch?

Many of our small business clients are learning that some of their health plan choices have been replaced with new healthcare plans that offer more limited networks with fewer in-network providers, or of medical plans that are restricted by geographical location. Just last week we were contacted by a primary care practice with 3 offices in West Virginia. They told us how  their current PEO had just informed them that an entire network of plans was  being eliminated. The majority of their employees will be left with just one  option, and a very expensive one at that. Needless to say, they are now looking to us to help the doctors find a better option for their staff.

It May Only Be RoundOne ?

The worst may be yet to come. September through January is when over 75% of group health insurance plans are set to renew. This includes most of the nation’s largest and most successful staff leasing, HR outsourcing, and professional employer services firms. Yet to announce their new health plan renewals are leading HR and employee benefits providers Advantec HR, Oasis Outsourcing, and SCI Staffing Concepts, who are scheduled to renew in the month of October, Frank Crum’s health rates are good until November, and Accord HR and Fortune Business Solutions renew in January 2011.

It is important to note that while these industry giants, and their highly compensated employee benefits advisors, are still battling it out with their health insurers, the fate of hundreds of thousands of small and midsize businesses are being decided. Combined, these PEOs and employee leasing companies represent about two hundred and fifty thousand (250,000) business owners and about five million (5,000,000) employees nationwide. Let’s hope for the best.

Choosing HRO and PEO Companies - What is Most Important?

HROs and PEOs - It’s All About PEOPLE

Human resource outsourcing and professional employer organizations provide SMEs, small and mid-size companies with a wide range of valuable administrative, professional, and technical services, whose functions can be burdensome, and disruptive to an organization, if not handled appropriately. Everyday we work with clients to assist in their evaluation and selection of HR outsourcing providers who can not only provide the level and quality of services that will enable our clients to operate more effectively and efficiently, but will develop into a mutually rewarding long term partnership.

In the course of our evaluation process, we examine all of the important functions that a company transfers to the professional employer or employee leasing company. We will look closely into their payroll application and HRIS human resource information system. Usually we arrange a demonstration, so that HR managers and payroll administrators can test a program’s ease of use, flexibility, and experience the power of the HR platform first hand.

We will evaluate and compare each PEO’s employee benefits plans, examining group health plans, dental and disability coverage, and 401k retirement plans. When workers compensation is a challenge, we’ll call for an on-site risk assessment, and go over loss prevention programs, risk avoidance and management systems, as well as OSHA reporting. Usually during the process, a business owner or HR executive will ask “With all of the critical factors we use to evaluate a professional employer organization, which is the most important factor to consider? The answer for me is a simple one.

  It’s All about the PEOPLE.

I agree that there are many important parts of a HRO or PEO operation that requires careful consideration, but nothing in my professional opinion, is more important than the professionals and support staff who routinely handle the tasks of payroll, benefits and HR administration, making certain that everything operates smoothly and error free.

Business executives and HR managers are keenly aware of the important role that technology plays in the administrative process. However, when someone presses the wrong button or adds an extra zero, it can create a world of chaos in any organization. The only solution, a quick and effective response by a capable and coordinated team of professionals who are available 24/7 to handle any potential issues.

Small Business Thought: Who Does The NFIB Really Speak For?

Does This Small Business Industry Group Support The Little Guy?

The National Federation of Independent Business proclaims in their tagline to be the “Voice of Small Business”. If that’s the case, why have they thrown their support and money (members dues and contributions) behind a lawsuit whose sole purpose is to repeal the Health Care and Education Affordability Reconciliation Act.

HR 4872 helps to level the playing field for small business owners. For too long, large corporations have had the advantage of purchasing better health insurance coverage and employee benefits for less then their smaller competitors. This makes it harder for small and growing companies to attract and retain a qualified and productive workforce. 

The purpose behind health insurance reform, and HR 4872 in particular, is to find ways to reduce costs and make the process of purchasing small group insurance easier. The act creates small business health insurance “exchanges”, and provides subsidies of up to 35% of premiums paid for companies with 25 employees of less. Aren’t these the very business owners that the NFIB claims to represent. Aren’t they always screaming that taxes are too high, and small group health insurance is too expensive.

What is it about the small business tax credit that I don’t understand?

No Free Lunch - Everybody Pays Into the System

Why would the National Federation of Independent Business join forces to repeal HR 4872. The bill does not create a single payer system or “Medicare” for all. The bill has little effect on the insurance industry. The bill allows insurers to continue to market group health insurance with additional protections for employer and employees alike. It even allows employers to keep the coverage they already have.

The bonus is for business owners who have been playing by the rules, and providing their employees with health insurance coverage. They will see lower costs in the form of tax credits, an easier and fairer system with less invasive underwriting, and more transparency in benefits and pricing.

Why help bankroll what will be a very expensive lawsuit? Especially, when it involves a group of primarily Republican politicians who are running for office. The claim is that HR 4872 imposes on our individual rights as citizens. Isn’t this the same group that preaches against Medicaid, Social Security and the concept of “NO FREE LUNCH”. What’s wrong with government asking everyone to contribute towards our healthcare system?

Small Business Health Insurance Tax Credits - Do We Qualify?

Employers With 25 Employees or Less Can Qualify … If

Now that the Health Care and Education Affordability Reconciliation Act of 2010 (HR 4872) has passed into law, what does it mean for the millions of small business owners across America? Well, the answer to that question really depends on your current practices. It could be very good news or bad news. Our focus today will be on the “Good News”.

If you are among the millions of small business owners who are currently providing health insurance for your employees, then the news couldn’t be any better. Under HR 4872, you could now qualify for the small business tax credit established by the Act to encourage small business owners to purchase group health coverage for their workforce.  Employers who contribute at least 50% of a still unspecified “benchmark premium” will be entitled to a tax credit of up to 35% of the premiums. Tax credits are also available for small non-profit organizations as well, however the amount of the credit is only 25% of their pemium contributions

To tell you more about the “Good News” click on the video from the most unlikely government agency … the IRS.

Stay tuned for the latest information on the things that matter most to organizations of all sizes, as we  help you to navigate the waters of health care reform, and issues that effect you, your company and your employees.