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Entries in health care reform (4)


Health Care Reform - The New Reality for PEOs

The End of Denial for Employee Leasing and PEO Companies?

NAPEO, The National Association for Professional Employer Organizations has published on their website napeo.org an announcement entitled;


I had to clean my glasses. This is an industry where many of it’s owners and executives, (over 98% of all employee leasing companies and PEOs are privately held) have fought health care reform every step of the way. Large contributions were made to The National Federation of Independent Business, The Chamber of Commerce, (click on this link to see the NFIB position) and a host of Republican PACs and lobbyists. We reported on their attitudes and views about Health Care Reform and the PPACA in our earlier blog post Want to Repeal Health Insurance Reform, Not Likely!!!.

NAPEO President and CEO Pat Cleary is quoted as saying “PEOs are already the go-to source for small businesses looking for help in preparing for and complying with the healthcare benefits changes brought on by reform, so we feel we have an important role to play as the implementation of the ACA proceeds” and offered its industry’s expertise as the Obama administration moves forward with implement the Patient Protection and Affordable Care Act (ACA).

Only time will tell if NAPEO, and the industry as a whole embraces Health Care Reform or not. My opinion is that the PPACA is one more reason small business owners should consider the services of proactive, qualified and responsible employee leasing companies and professional employer organizations.


If It Ain't Broke, Don't Fix It !!! Hawaii Wants Out of Health Care Reform

As the debate over health care reform rages on in Congress and across the country, our illustrious and beautiful 50th state is asking to opt out of whatever ultimately gets passed. Attorneys who specialize in health-care and employment issues say they believe a Hawaii exemption is needed to maintain the level of coverage that residents have grown accustomed to. “We don’t need the feds to go in and mess up our system,” said Michael Nauyokas, a Honolulu arbitrator and labor lawyer. “I doubt that the proposed federal law is going to be as good as the Prepaid Health Care Act, which is working, or as comprehensive. So why fix something that’s not broken?”

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Small Employers Struggle to Offer Health Insurance

Only 43% of small businesses still offer health coverage

In the past decade, the average health insurance premium for a single worker at a company with fewer than 50 employees went from $2,475 to $4,501, an 82% increase, according to data from the U.S. Department of Health and Human Services. Family premiums increased by 93% in that period, to $11,679.

At the same time, the percentage of small businesses offering coverage dropped from 47% to 43%, compared with 96% for companies with 50 or more employees.

Shifting Costs to the Employee

Analysis by PricewaterhouseCoopers (PwC), reaveals that overall medical costs will grow by about 9% in 2010. Many companies are buying less generous policies to keep prices in check and shift part of the cost increase to workers. “A company that maybe has a $1,500 deductible today might renew and get a $2,500 deductible”; says Carey Wolf, sales manager for the small group health unit at online insurance broker eHealth.

“Businesses are realizing that maybe part of that has to be absorbed by the user by having a little bit higher deductible or a little bit higher co-pay”.

Carey Wolf, eHealth

Is Help from Congress Around the Corner?

Washington lawmakers are trying to write legislation to contain health-care costs and expand coverage. According to PwC, even if reform passes this year, any effect on the price of care wont be seen until 2011 at the earliest.

In the meantime, small businesses, many having survived the worst 2 years in their histories, face hard questions.  How—and how much—to pay to keep their employees and their families healthy.

Source : John Tossi, Business Week October 6, 2009


Health Care Reform Prompts Daviron Group to Partner with PEO Consulting Firm

Employers Rx LLC, a nationwide employee leasing, HR outsourcing and PEO consulting firm, has formed an alliance with Daviron Group, a company with a strong Midwest presence. Bruce Silver, founder of Employers Rx, explained “We are proud to announce that we are teaming with the national business and healthcare management consulting firm, Daviron Group LLC. The combination of our expertise and unique services will help healthcare facilities and physician practices operate more effectively and efficiently. Small and mid-size organizations can reduce the cost of employee administration, benefits, and HR compliance by outsourcing these responsibilities to qualified professional employer organizations. We look forward to expanding our presence in the Midwest, where Daviron is strategically positioned, and nationally as our partnership expands.”

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