It’s still unclear the exact role that PEO’s will play over the next few years as they are not specifically addressed under the “Healthcare Reform” legislation. As it stands today, PEO’s will act as INSURANCE EXCHANGES and facilitate the “Essential Health Benefits” requirement for Health Insurance for Employers who are choosing to continue to offer Health Insurance to their employees as an employee benefit thus complying with the new Federal Law requiring ALL EMPLOYERS to offer Health Insurance to FTE ( Full Time Eligible or Equivalent employees. The New law states that any employee that works over 30 hours per week on average now qualifies for this provision and employers face penalties if they do not comply.
PEO’s offer a great solution for many businesses who are looking for some help in compliance with the Provisions that are already established and the coming Regulations ( many of which have not been written to carry out those provisions). Below is a Flowchart to help Employers Navigate through Healthcare Reform and additional Resources for Employers can be found HERE. PEO’s also bring additional resources such as HR Compliance, Shared Risk Management, Payroll processing and Reporting, Other Employee Benefits and much more. Additionally, PEO’s still offer the UNIQUE ability unlike anyone else, the ability to UNDERWRITE their membership. Why is that important? Because the ability to underwrite has been taken away from many insurance plans and the Private & Public Exchanges, meaning those Plans have to take “Everyone” regardless of health status or “Group’s Health”. PEO’s still have the ability to be selective of which employers they work with, thus what employers will share in their “Employee Pooling” or “Shared Risk” within their health plan. This means that many PEO’s will offer lower costs alternatives for companies that want to keep costs down. Moreover, especially for SMALL employers who currently have to provide additional “Essential Health Benefits” to their plans, thus driving up the costs as much as 200% – 300%, Under certain circumstances with some PEO’s, they will be able to qualify as “Large Employers” who are exempt from having to provide these benefits ( and thus the COST ) mandated under PPACA.
CONTACT US TODAY for a FREE PEO ANALYSIS to see if a PEO might be a fit for you.
CLICK HERE FOR MORE INFORMATION ON HEALTHCARE REFORM AS IT RELATES TO YOUR BUSINESS.