ROI of a PEO 2019

ROI of a PEO 2019

by | Sep 20, 2019 | group health insurance, PEO

The ROI on a PEO is 27.2% according to a new 2019 study released today by the National Association of Professional Employer Organizations (NAPEO) .

The new report focused solely on costs and calculated savings for PEO clients in five HR-related areas:

  • HR personnel costs
  • Health benefits
  • Workers’ compensation
  • Unemployment insurance (UI)
  • Other external expenditures in areas related directly to HR services (payroll, benefits, etc.)

An annual per employee savings of $1,775 is reached according to the study. Notable findings are lower employee turnover, higher rates of both employee and revenue growth, and enhanced employee benefit offerings.

PEOs provide HR, payroll, benefits, workers’ comp, and regulatory compliance assistance to small and mid-sized companies. By providing these services, PEOs help businesses improve productivity, increase profitability, and focus on their core mission. Through PEOs, the employees of small businesses gain access to employee benefits such as 401(k) plans; health, dental, life, and other insurance; dependent care; and other benefits typically provided by large companies. A copy of the full study is available here.    

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7 Ways Small Businesses Benefit from a PEO

7 Ways Small Businesses Benefit from a PEO

by | Aug 23, 2019 | group health insurance, HR, PEO, Small Business Group Health

The number of small and medium-sized employers using professional employer organizations (PEO) continues to increase each year. Often, it is thought that the growth of the PEO industry is due mainly to the benefits business owners see from this partnership. However, owners aren’t the only ones who gain from working with a PEO. 

Small business employees, too, stand to benefit from the services and solutions offered by PEOs today. Let’s take a look at a few examples of the positive outcomes that small business workers see when their employer works with a PEO.

1. Better Benefits 

One of the most well-known advantages to using a PEO is gaining improved, modern benefits and perks. And while better benefits help employers retain and recruit talent, these enhanced perks often provide even greater for employees.

When working with a PEO, employees are given access to a wide-variety of personalized benefits, including:

  • Health insurance
  • Retirement benefits
  • Voluntary benefits (pet insurance, identity theft protection, financial and legal programs, telehealth programs, etc.)
  • Complimentary benefits (discount programs, employee assistance programs, etc.)

By having solid HR policies, a comprehensive benefit package, and employee perks, you are able to create a safe and happy workplace that helps you attract quality employees and retain them to reduce the cost of turnover.

2. Workers’ Compensation Savings

Over the last few years, the workers’ compensation market has gotten a lot tougher for business owners. PEOs help businesses secure competitive rates for workers’ compensation insurance. That can sometimes be challenging for start-up companies, companies with past losses or those with high-risk jobs. PEOs have flexible workers’ compensation programs with more affordable rates than stand-alone policies and staff who help manage the cost of claims, coordinate return-to-work programs and recommend safety training

In most cases, it will be a more cost effective option than the traditional market can offer. We can also include Employment Practices Liability insurance which covers lawsuits arising from wrongful termination, discrimination, and sexual harassment. Issues that are becoming more common in today’s workplace. 

3. Solve HR Issues  

Federal, state and local regulations related to HR are more voluminous and complex than ever. Most businesses don’t have the staff for the in-depth subject matter expertise needed to adequately navigate wage and hour regulations and ensure compliance with the full range of employment and tax laws. When small and mid-sized businesses work with a PEO, they get a team of compliance experts who stay current with all the rules and regulations that apply to employers. 

A PEO also helps manage HR risk by helping clients:

  • Create an employee handbook to include anti-discrimination and harassment policies
  • Familiarize themselves with wage and hour laws
  • Pay employees in accordance with the law
  • Pay employees in a timely manner 

4. Compliance Relief 

PEOs are responsible for staying up-to-date on the latest federal and state labor laws and  regulations. This not only saves you time, but also the frustration that comes with trying to make sense of and implement many of these changes. 

By staying up-to-date on these changes, you can avoid hefty fines and disgruntled employees.

5. Modern HR Tech

 This desire for modern technology has also become an expectation for HR tasks that employees are asked to perform, such as requesting PTO, going through benefit enrollment, and submitted their hours.

The majority of PEOs offer their clients the kind of HR tech that employees want and need. Some even have mobile apps that make tasks as simple as possible for employees!

And most PEOs, through their HR technology, can offer small business employees learning and development programs and software that much larger organizations use.

A great HRIS System is fundamental today. By meeting employee expectations, employers help boost the happiness and ultimately retention of their workforce.

6. Employee Happiness

 Enhanced benefits, robust learning and development programs, and easy-to-use, modern technology all help to boost the employee experience.

 For employees, increased happiness makes their connection to their work and employer greater. And for employers, happy employees mean improved productivity and lesser chance of turnover – studies from the National Association of Professional Employer Organizations (NAPEO) have shown that PEOs help their clients reduce turnover by 10% to 14%.

 A happier workplace and workforce are good outcomes for everyone and working with a PEO can help achieve these goals!

7. Competitive Business and Personal PEO Insurance Quotes 

360PEO can also provide competitive quotes on all of your personal insurance needs. We work with several industry partners to help clients find coverage for many commercial lines of insurance, such as Group Long Term Care Insurance, Executive Benefits, General Liability, Property, and Commercial Auto.

 We also offer personal lines insurance such as renter’s policies, home insurance, and life insurance.  

 

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Learn how our PEO Partnership can help your group please contact us at info@360peo.com or (855)667-4621.

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For more information on PEOs or a customized quote please submit your contact. We will be in touch ASAP.

NYS 2019 Final Rates Approved   

NYS 2019 Final Rates Approved   

by | Aug 7, 2018 | CT, group health insurance, Health Care Reform, Health Exchanges, NJ, NY News, Small Business Group Health

NYS 2019 Final Rates Approved    

NYS has approved  2019 Final Rates last Friday. Small group rates will increase 3.8% and 8.6% for individuals.

As per NY State Law, Health Insurers are required to send out early notices of rate request filings to groups and subscribers see original –NYS 2019 Rate Requests.  Despite only 3 months of mature claims data experience for 2018  health insurers’ original requests were noticeably below average 7.5% for small group and 24% for individuals.  Ultimately NYS reduced this request substantially by approximately 50%.

Experts are concerned over the long term effects. Example, the Individual  mandate was removed last December by Presidential order. Without the Mandate anyone can drop insurance without penalty.  A comparable take away for similar auto insurance industry would be something like this -Drivers ought not be mandated to buy auto insurance as its a profit scheme by Insurers. While a popular decision this will hardly bend the curve long term and reduce competition.  Furthermore, the new order of Selling Across State lines makes NYS most unwelcoming.

OTHER STATES

Insurers have been filing to sell Obamacare plans that will go into effect in 2019, and in some states they appear to be pricing in for the fact that the mandate is going away next year. Other states are seeing mild increases, but that is in part because they saw significant hikes for the previous year.

Insurers have concluded that fewer people will enroll without the mandate than otherwise, so in some places they are pricing their plans higher based on the assumption that sicker people will be left behind, which will increase medical costs for those left. It is well worth pointing out that in recent years the loss federal risk reinsurance corridor funds account for 5.5 percent of the rate increase.

How are neighboring States doing?

In NJ, not that bad.  Last year the average increase were 5.5% for small groups and some popular plans such as  Horizon Blue Cross Blue Shield’s  OMINA  increasing only 4.8% increase.   This year the increase is only 5.2.  Other insurers offering EPO and HMO plans in the individual market for 2019 include Oscar Health and Oxford Health Plans.

With individual mandate repeal fewer people will buy health insurance raising the prices for those who do. NJ Banking and Insurance Department officials said premium prices would have increased, on average, by 12.6 percent.

For CT market, on the other hand, things are much worse at least for the individual marketplace with average 25% rate increases last year.  The 2019 proposed rate increases for both the individual and small group market are, on average lower, than last year: The proposed average small group rate increase request is a 10.22 percent and ranges from -5.0 percent to 21.1 percent. This compares to the average increase request of 18.06 percent requested last year.The proposed average individual rate increase request is 12.3 percent and ranges from -10.9 percent to 31.0 percent. This compares to the average increase request of 25.51 percent requested last year.

Final plan rates in New Jersey & CT will be finalized and released in the fall, state officials said. ACA open enrollment begins Nov. 1

  • Trend: Trend is a factor that accounts for rising health care costs, including the cost of prescription drugs, and the increased demand for medical services.
  • Uncertainty in Washington:
    • Removal of penalty for individual mandate: The elimination of the penalty means that individuals who are typically younger and healthier would have no inducement to participate in the insurance pool, which could further destabilize the market. Lack of participation shrinks the pool and increases the cost of insurance to the remaining members.
    • Short-duration health plans and Association Health Plans: Still pending are final federal regulations on non-ACA compliant short-duration plans, which may have implications for the ACA risk pool. Also, Connecticut along with other state insurance regulators, are awaiting clarification from the federal government on new federal regulations allowing association health plans, which could further shrink the ACA risk pool.

 A bipartisan group of congressional representatives has discussed an agreement to extend and guarantee the payments, but it’s unclear whether they could do so by the new filing deadline of Sept. 5. A lawsuit filed by Congress against the Obama administration to challenge the payments is still pending. In addition, Trump has repeatedly threatened to withhold payments to insurers that reduce cost-sharing – deductibles, copays and coinsurance – paid by low-income customers. More than half of New Jersey’s marketplace customers receive that assistance, and without it, most would be unable to afford coverage.

Finally, a tax on health insurance premiums has been reinstated in 2018 after a one-year “tax holiday” approved by Congress for 2017. That contributed 2.3 percent to the rate hikes that insurers requested for 2019 and for  2019

SMALL GROUP MARKET VS.  INDIVIDUAL MARKET

Importantly, small group market is still more advantageous than individual markets unless one gets a sizable low-income tax credit. Overall, about 350,000 individual plan consumers will be affected by the price hike, while more than a million users will be hit by higher small group fees. Last year, Blue Cross Blue Shield released a study showing Obamacare user costs were 22 percent higher than people with employer-sponsored health plans, while UnitedHealth plans to exit most Exchanges see –  Breaking: Oxford Exits Metro Indiv & Oxford Liberty HMO 2017.

The correct approach for a small business in keeping with simplicity is a Private Exchange and with our large buying group PEO partnerships. This is a true defined contribution empowering employees with a choice of leading insurers offering paperless technologies integrating HRIS/Benefits/Payroll.  Both employee and employers still gain tax advantage benefits under the business.  Also, the benefits, rates and network size are superior under a group plan as the risk are lower for small group plans than individual markets.

Learn how a PEO Partnership can help your group please contact us at info@360PEO.com or (855)667-4621.

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NYS 2018 Health Insurance Rate Filing

NYS 2018 Health Insurance Rate Filing

by | Jun 8, 2017 | family health insurance, group health insurance, Health Care Reform, Health Exchanges, Individual Exchanges, NY News

NYS 2018 Health Insurance Rate Filing

Yesterday, NYS 2018 Health Insurance Rate Filing were released. The total weighted average increases were 11.5%  small groups and 16.6%  individual market.  This early filing request deadline request requirement is not an Obamacare requirement.  As per NY State Law carriers are required to send out notices of rate increase filings to groups and subscribers.

These are simply requests and the state’s Department of Financial Services has authority to modify the final rates. But they are the first indication of what New Yorkers can expect when shopping for health insurance on the individual marketplace at the end of this year. The news comes as insurance companies across the country brace consumers for another year of large rate hikes, owing in part to the composition of the individual market, and in part to the uncertainty over the future of the law under the Trump administration.

Background:

By comparison last year  NYS 2017 Rate Request early filings were higher at 12.3% small group and 19.3% for individuals.  The final filing rates were lower  NYS 2017 Final Rates were 8.3% small group and 16.6% for individuals.  The NYS 2016 Rates final rates were 9.8% small group and 7.1% for individuals.  Using these past figures one projects a 2018 Final Rates of 7% small groups and 14% individuals.

With only 3 months of mature claims in 2017 to work of off Insurance Actuaries have little experience to predict accurate projections. Simply put the less credible information presented to actuarial the higher the uncertainly and higher than expected rate increase.  The national rate trend, however, has been much higher than in past years due to higher health care costs and the loss of Federal reinsurance fund known as risk reinsurance corridor.

Individuals:

NYS 2018 Filing Request for Individuals

Individual rates are expected to be higher than small group. The national rate trend, however, has been much higher than in past years due to higher health care costs  Like other states throughout the nation, the 2018 rate of increase for individuals in New York is higher than in past years partly due to the termination of the federal reinsurance program.  The lost of the program’s aka federal risk reinsurance corridor funds accounts for 5.5 percent of the rate increase.

This is one of the reasons why the individual market is significantly more costly to operate than small group as per recent Aetna and United Healthcare pull out of most State Individual Exchanges.   Another local example was last year’s Oscar Health Insurance which had lost $105 million and is asking for up to 30% rate increase.  The 3 year old company  said the increase was necessary because medical costs have risen, government programs that helped cover costs are ending, and its members needed more care than expected.  For 2018, with successful pivotal changes Oscar is asking below average 11% individual increase and a decrease of 3.2% small group next year.

Small Groups:

While small group rates are better risk and naturally lower rates.  There is some rate shock with notably Careconnect.  CareConnect, the financially struggling health insurance arm of Northwell Health, has asked the Cuomo administration to allow an average 30 percent premium hike on the individual market in 2018. The company, which lost $157 million in 2016, is asking for small group increases that range between 9 and 24 percent.NYS 2018 Health Insurance Rate Filing

THE THREE R – RISK CORRIDOR, RISK ADJUSTMENT & REINSURANCE designed to mitigate the adverse selection and risk selection. The problem, according to many insurance companies, is that the formula is flawed, and CareConnect executives have consistently complained that they are at an unfair disadvantage. The Cuomo administration has taken steps to ameliorate some of those problems, giving the DFS the authority to essentially overrule the federal numbers.  In its first-quarter financial report, executives made clear that the risk adjustment penalty was a threat to its business.

Instead, the correct approach for a small business in keeping  with simplicity is a Private Exchange.  This is a true defined contribution empowering employees with choice of leading insurers offering paperless technologies integrating HRIS/Benefits/Payroll.  Both employee and employers still gain tax advantage benefits under the business.  Also, the benefits, rates and network size are superior under a group plan as THE RISK OUTLINED ABOVE ARE HIGHER FOR INDIVIDUAL MARKETS THAN SMALL GROUP PLANS.

You may view the NYS 2018 Rate Requests DFS press release, which includes a recap of the increases requested and approved by clicking here.

For a custom analysis comparing PEO with YOUR upcoming 2017-2018 renewal please contact our team at 36PEO (855)667-4621.  We work in coordination with Navigators to assist with Medicaid, CHIP Child Health Plus, Family Health Plus and Medicare Dual Eligibles.   We have Spanish, Russian, and Hebrew speakers available.  Quotes can also be viewed on our site.

Summary of 2018 Requested Rate Actions

INDIVIDUAL MARKET

Company Name2018 Requested Rate Action
Affinity23.5%
Care Connect29.7%
CDPHP15.2%
Crystal Run Health Plan, LLC8.7%
Emblem (HIP)24.9%
Empire **N/A
Excellus4.4%
Fidelis8.5%
Healthfirst Insurance Company, Inc.13.0%
Healthfirst PHSP, Inc.22.1%
HealthNow New York47.3%
IHBC25.9%
MetroPlus7.9%
MVP Health Plan13.5%
Oscar11.1%
UnitedHealthcare of New York Inc38.5%
Total Weighted Average16.6%

SMALL GROUP MARKET

Company Name2018 Requested Rate Action
Aetna Life14.2%
Care Connect19.3%
CDPHP21.1%
CDPHP UBI8.6%
Crystal Run Health Insurance Company0.0%
Crystal Run Health Plan, LLC3.9%
Emblem (HIP)8.5%
Empire Healthchoice Assurance12.9%
Empire Healthchoice HMO13.8%
Excellus8.0%
Healthfirst Health Plan, Inc.10.0%
Healthfirst Insurance Company, Inc.10.0%
HealthNow New York8.9%
IHBC14.5%
MetroPlus5.1%
MVP Health Plan8.5%
MVP Health Services Corp11.7%
Oscar-3.2%
Oxford Health Insurance Inc11.4%
UnitedHealthcare Ins Company of New York15.2%
Total Weighted Average11.5%

*These averages may change based on DFS’s review of the rate applications.

** Empire submitted a filing that DFS is evaluating.

 See Health Reform Resource
Why a Private Exchange?

Why a Private Exchange?

by | Nov 3, 2016 | group health insurance, Millennium Medical Solutions Corp, Small Business Group Health

Why a Private Exchange? A Private Exchange Answers These Top 10 Questions.

Why a Private Exchange?

  1. Defined Contribution: I don’t want to get involved in peoples individual health insurance needs. How does the Employer extricate from this very personal and important employee need and yet still offer this benefit? I like the defined contribution similar to a 401k.

 

  1. Tax Advantages: How do I offer the group and employee pre-tax advantages not offered on an individual basis?

 

  1. Group Insurance Upgrade: How do I upgrade from the diminishing individual market and meet strict group underwriting? Rates are higher, smaller networks and lower benefits in this segment.

 

  1. Full Fortune 500 Benefits: How do I offer balanced voluntary benefits similar to a Fortune 500 company? Some employees are asking for group discounted dental, vision, disability, life insurance and supplemental coverage such as AFLAC but we can’t guarantee the minimum participations.

 

  1. Simplify: I don’t have the time needed to make annual plan changes. How do I empower my employees with choice, education and various networks to make their own choices? Many times I’d just rather absorb the 10% increase than deal with the changes.

 

  1. Choice: I have employees all over the Metro area. How can you help me offer more than 1 or 2 health plans as benefits have become more complex and networks increasingly narrow geographic sensitive in nature?

 

  1. Technologies: Can you give me the technologies needed to make this paperless? Do you have a platform that I can use as an intranet communication portal? Can I securely store documents such Employee handbooks and notification?

 

  1. Added Value: Can you offer additional supporting tools aside from technology? Do you have COBRA and section 125 cafeteria documents?

 

  1. HR: Do you have an HR Services for Employers Support? Will you have employee support such as a 24/7 independent CS concierge services?

 

  1. Personalization: Will I have an in person experienced knowledgeable consultant available for support on plan design, metrics, and customer care and employee open enrollment?

 

Is a Private Exchange Right For My Group?

If you’re a small business owner who has concerns about payroll, filing paperwork, and complying with government regulations, co-employment may be the service you’ve been looking for.  In some cases, a Private Exchange may NOT be right for you. With Health Care Reform your company may qualify for a small business tax credit or a be eligible for a large group discount under a PEO.

Try us on a custom demo, contact us at (855)667-4621 .

Resource:

Private Exchange White Papers 

Empire Strikes Back – 2017 Plans

Empire Strikes Back – 2017 Plans

by | Sep 20, 2016 | group health insurance

Empire Strikes Back – 2017 PlansEmpire blue cross 2017 plans

Empire recently announced  their re-entry back into the New York small group market for 2017. A legendary broad networked PPO is welcome news especially in the NY small group market of 1-100 employees.  Recently, the broad national networks have  diminished to only 2 national health insurers, Aetna and Oxford.  As a result of Empire Blue Cross participation in the BlueCard PPO program members enjoy unparalleled national access network to 96% of hospitals and 93% of doctors across the country. This national program will be on 18 of 28 plans below.

Network Overview

3 distinct networks:

PPO Network Savings

PPO Network Savings

  1.  PPO/EPO Network – traditional non-gatekeeper large network of approximately 85,384 physicians, 160 facilities and the BlueCard PPO
  2. Blue Priority Network – hybrid of broad PPO/EPO 160 facilities  and similar Pathway’s 65,796 physicians network.
  3. Pathway Network –  HMO value based narrower gatekeeper referral network of 109 facilities and 60,535 physicians. Limited to 28 NYS Counties.

Additional Features:

  •   Telemedicine will be available on all products
  •   Vision –  Limited adult vision will be available on all products at no additional cost.empires-whole-health-connection
  •   Pharmacy – All plans use their large BCBS formulary Except the HMOs, and the Silver and Bronze Blue Priority Plans. They will be utilizing what they call the Select Formulary.
  •  Clinical Programs – health coaching/advocacy, disease management, behavioral health, maternity and Gaps in Care
  •  Online Resources – wellness coaching, discounts, health assessments and The Weight Center.
  •   Healthy Support – Wellness program offers easy ways to earn up to $900 per member, per year.  Gym Reimbursement  $400 single/$600 couple, $100 Wellness + Flu Shot, Online Wellness toolkit, up to $150 and $50 Tobacco-free certification online.

 

DOCTOR SEARCH:  Click Here 

BENEFITS SUMMARY: OXFORD Platinum, Gold, Silver AND Bronze

Small Group Rates:  1st Quarter 2017

Drug Formulary: Click Here

Blue Priority  FAQ: Click Here 

Pathway FAQ: Click Here

Ask us about Empire’s flexible low participation voluntary group dental, vision,  disability and life insurance plans. Stay proactive and contact us today for a customized consult on how your organization can prepare  ahead  for ACA, Benefits, Payroll and HR  @ (855) 667-4621 or info@medicalsolutionscorp.com.

empire-voluntary-ancillary-dental-whole-life