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Entries in Group Health Insurance (16)

Wednesday
Jun262013

PEOs Help With Health Care Reform and the ACA.

Affordable Care Creates Demand for HR Outsourcing & PEOs

There is no question that  the (PPACA) Patient Protection and Affordable Care Act and Healthcare Reform has created the greatest opportunity for the PEO industry in decades. Employee leasing companies, HR outsourcing firms, benefits administration and health insurance enrollment specialists are ramping up to assist small and mid sized business owners and non profit organizations with implementing the Affordable Care Act, and complying with all the new rules and regulations.

Costs - Credits - Penalties - New Reporting For All

The complexities and costs associated with the Patient Protection and Affordable Care Act can be too overwhelming for the average small and mid-sized companies. Under health care reform, all group health plans are required to provide a minimum level of coverage for medical expenses. This could mean higher premiums for plans providing richer coverage than before. Limited benefit and high deductible health plans will not qualify under the PPACA.

Small business owners, described as 25 employees or less, can qualify for a premium tax credit. The credits are calculated based on the number of employees, average wage base, and the premiums paid by the employer to cover their staff and workers. Low wage paying employers with 15 employees or less, can expect to qualify for a credit of up to 50% of their premiums.

See Tax Credits - Do We Qualify?

The Affordable Care Act requires employers with 50 full-time employees or more (based on 30 hours per week and over) to provide affordable health insurance coverage for their employees or pay a $2,000 penalty per full time employee, excluding the first 30. This is often referred to as “play or pay” by individuals and representatives of the health insurance industry. Businesses and organizations who employ workers at the legal threshold should make certain they are in compliance at all times. The law requires a formula that measures the hours of full and part time workers to determine the total number of full time equivalent workers that an organization employs.

Larger employers must make certain that low wage employees do not contribute more than 9.5% of their earnings for their coverage. In addition to testing for full time workers,there are additional considerations for seasonal and short term workers. This can making testing especially complicated for construction, farming, health care, hotels and restaurants, landscaping, maintenance, schools, and the staffing industry. Under the PPACA, the IRS has instituted new regulations for reporting employer paid contributions for health insurance benefits that affects companies of all sizes.

PEOs - Health Reform’s Best Kept Secret

Employee leasing, personnel management, and Professional Employer Organizations are uniquely qualified to provide the solution. PEO’s provide companies with a comprehensive integrated solution that entails the administration and processing of payroll, they calculate and submit payroll taxes accurately and on time, and submit all payroll reports with the required information to your local, state and federal agencies making certain that your organization is in full compliance.

     “The PEO Industry is in the best position to tackle all the complexities of administering and complying with the Affordable Care Act and Health Care Reform.”

“The trouble is that I don’t hear enough employee leasing companies and professional employer organizations telling the business community exactly what it is that PEOs do, how we can relieve them of problems of dealing with health care reform, and help them stay focused on running their business.”

Rod Diekema - PEO Network

Some larger professional employers offer a choice of health insurance plans that have been tested to assure compliance with the PPACA. Many PEO’s can assist larger companies with testing for determining full time equivalents and contribution strategies to attain “safe harbor” status to avoid facing a $3,000 contribution penalty, should an employee obtain coverage in the public exchange instead of opting for the company’s group health plan. 

Inspirity - Getting The Message Out

 

     “Health care reform has generated over 15,000 pages of regulations filled with increased complexities, compliance and cost for your business. You can spend the time and money to figure it out, or you can  …..”

Paul Sarvardi - CEO Inspirity

Health Care Reform Video

Complying with health care reform will affect every employer in some way. Depending on the size and structure of an organization’s workforce, the remedies and requirements may be unique to your organization, even in the same industry. This is why the administrative capabilities, benefits expertise, human resource information technology, and payroll systems of HR Outsourcing and Professional Employer Organizations can be invaluable today, and in the future.

Sunday
May262013

Health Insurance Marketplaces Are Coming - Are You Ready?

What PEOs and Small Business Owners Should Know

With 2013 almost halfway over, our attention turns to 2014, when the Affordable Care and Patient Protection Act goes into effect. The individual mandate kicks in, requiring all Americans to purchase health insurance or face a fine. Employers with 50 employees or more will also face penalties of $2,000 per employee (the first 30 employees don’t count) for not providing a minimum level of health insurance coverage.

Small business owners, or employers with less than 50 full time employees (defined as 30 hours or more) are exempt from any penalties, fines or requirements to provide coverage to their employees. To the contrary, smaller businesses (defined as 25 employees or less) are rewarded for offering coverage to their workers. In 2014, companies can receive a credit of up to 50% of their premiums. The credits are calculated on a sliding scale which favors lower wage employers with 15 employees and less.


Most small business owners in America employ less than 50 full time employees. Those companies will not be subject to most of the provisions of the Affordable Care Act. This doesn’t necessarily relieve employers from any it’s responsibilities when it comes to guiding and assisting their workforce to comply with the individual mandate. Many lower wage employees will qualify for premium support in the form of credits that will offset their cost of coverage.

According to statistics compiled by the PEO Network, www.peonetwork.com, there are over 700 employee leasing, personnel management companies, and professional employer organizations operating throughout the United States. Approximately 90% - 95% of their client companies are firms with less than 50 full time employees. Many of their clients, small business owners, will be seeking the employee benefits and health insurance expertise these companies provide. PEOs are uniquely qualified to handle the additional compliance, reporting and analysis that business executives, HR professionals and tax professionals will require.

Health insurance marketplaces, formerly referred to as exchanges are being implemented in all 50 states. Some will be operated by the states individually, like California’s health insurance exchange called “Covered California” http://www.coveredca.com. Other states, like Florida, will introduce marketplaces which will be operated by the federal government, while other states will manage marketplaces as a joint partnership.

Are you ready?

Wednesday
Jul202011

Top PEO Broker Asks ... What Healthcare System? Can We Fix It?

As one of the nation’s leading employee management consultants, we help small business owners and HR managers solve many of the most challenging issues facing employers today. Most of America’s CEO’s and CFO’s agree that obtaining affordable health insurance continues to be a complex and time consuming responsibility that directly touches each one of their employees. Very often, the quality of an employer’s benefits program is key to a company’s ability to attract and retain a happy, healthy, loyal and productive workforce.

Everyday our clients ask for advice and opinions about their health insurance options. Many have concerns about the future of America’s health care system once “Health Care Reform” is fully implemented. I could explain the huge savings a cohesive system would produce, the improvements in the delivery of care, outcomes, and longevity. Just consider the reduction in adverse reactions, paperwork and stress one could expect from a responsive, simple, and transparent system. Think of all the time, energy and resources each citizen would save.

It often amazes me how we routinely accept and allow the insanity of our current system to continue. I came across a very funny video which identifies some obvious improvements for creating a consumer friendly and proactive healthcare system.

What if airlines in United States worked under the same conditions established by health insurers, medical providers, hospitals, and practice management gurus?

Just imagine. How would you fix our broken healthcare system?

We welcome your comments on how you would cure a healthcare system on life support.

Friday
Sep242010

Employers Rx Debuts Benefits & Perks Portals at NAPEO

Introduces PEO Portals for Increased Client Retention & Revenue

Employee management consulting firm Employers Rx LLC will be attending the 2010 National Association of Professional Employer Organization’s annual conference. The company is among over 70 exhibitors that will set up shop at NAPEO’s marketplace for three days. The list of exhibitors includes a who’s who of industry leaders. All the major insurance carriers including AEtna, Aon, Humana, Lexington, MassMutual, Met Life, Sunz Insurance, Transamerica and Wells Fargo will be represented. Employers Rx company founder Bruce Silver will be on hand in booth 422, where he will be showcasing several revenue enhancing client retention tools that raise the level of service for employer service companies

Joining Bruce at the event is industry sales veteran, Rod Diekema, owner of PEO.com LLC, and developer of internet website PEO.com, which is recognized as the leading web portal for small and mid sized companies searching for HR outsourcing and professional employer services. Also attending the conference is Matthew Zinser, Employer Services Development Director for Liazon Corporation. Matt will be introducing Liazon’s award winning Bright Choices benefits portal, which transforms the way health insurance and employee benefits are purchased and delivered.

This year, NAPEO’s Professional Employer Conference and Marketplace takes place in the home of the Alamo, beautiful and historical San Antonio, Texas.  HRO and PEO executives from across the country will attend the 3 day event held at the JW Marriot San Antonio Hill Country Resort and Spa on September 27 - 29. The conference attracts representatives from over 300 national and regional payroll administrators, employee leasing companies, HR outsourcing and professional employer organizations.

Visit us at the NAPEO Marketplace in booth 422.

Stop by and win a chance to take home our company mascot Willie, the “Will Do” duck.

We hope to see you there.

Thursday
May202010

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.