PEOs Allow Business Owners to Offer Comprehensive Employee Benefits at Affordable Rates
In a job market with low unemployment, labor trends show business owners making competitive and comprehensive employee benefits programs a top priority to attract and retain good employees. When employees are healthy, the business benefits. Preventive care and affordable access to health care prevents employees from taking extended periods of sick leave, allowing business to be more productive and profitable. Employees who feel supported mentally and physically also tend to stay with a company longer.
However, few companies, especially small businesses, can efficiently employ enough staff to support a strong benefits program, and even if they can, the cost is steep and should be weighed against the option of having a complete PEO Benefits Department. Working with a Professional Employer Organization (PEO) for group health insurance and other employee benefits allows business owners to offer health coverage without sacrificing as much time or money as they would spend to figure out how to administer a benefits program on their own.
2018 Benefit Trends
Health for the Family
Flexible Spending Accounts
Paid Time Off
Short and Long-Term Disability
PEOs are designed to combine employee benefits programs with payroll services, human resources and workers’ comp insurance to offer a “one-stop shop.” Working with a PEO allows employers to offer group health insurance and other great benefits affordably, save time and money, attract and retain top talent and remain compliant. Because PEOs spread costs across a larger pool of employees, businesses can more affordably offer employees group health insurance and other employee benefits.
Broad Array of PEO Group Health Insurance Options
A PEO typically works with multiple insurance carriers to offer a broad array of health care options that include dependent coverage. An example of a PEO master health insurance plan includes the following:
- Access to a large number of doctors and hospitals
- Online access to health information, claims, and resources
- Discounts on things like eye exams, glasses, contact lenses, weight loss programs, fitness memberships, exercise equipment and hearing aids
As for the employer cost, Health Maintenance Organizations (HMOs) may be a good option, but have more limited doctor networks. Preferred Provider Organizations (PPOs) allow employees more flexibility to choose from a broader array of doctors. A PEO offers both options as well as High Deductible Health Plans with Health Savings Accounts.
PEOs Administer Group Health Insurance and Other Benefits
PEOs assist in selecting health plans, then support clients with the necessary tools to administer them. PEOs also offer medical savings accounts and other health benefits that employers can elect without any employer contributions, such as dental and vision plans. The PEO may administer benefit plans employers already have in place. Benefits administration with a PEO includes a dedicated team to assist with carrier communications as well as online benefit enrollment, pre-tax elections, plan summaries and Exchange Notices.
PEO Benefits Management Services:
- Offering eligibility notifications for adding newly hired employees
- Processing employee enrollment, life change and termination requests
- Administering COBRA
- Reconciling bills and providing timely payment to carriers
- Managing escalated billing, claims and service issues
PEO Group Health Insurance Plans are ACA Compliant
Although many changes have taken place with the Affordable Care Act, it still requires employers with 50 or more full-time and full-time equivalent employees to offer employee health benefits or pay a tax penalty. PEOs work to find innovative ways to cut costs through carrier incentive programs, alternate funding and MEC plans. MEC plans offer employees 100% covered wellness services and immunizations and help employers avoid the 4980H9a) penalty by complying with the first hurdle of the Employer Mandate. A PEO assists employers in compliance with state and federal regulations like ACA, COBRA and ERISA.
At FrankCrum, we consult with you to help you determine whether offering a benefits package is feasible and what type you desire. MK Medical Center is one of many FrankCrum clients that opted for health insurance coverage and has seen business and staff levels grow as a result. In addition to group health insurance, adopting FrankCrum’s 401(k) is very attractive for business owners in terms of complete flexibility, administration and costs. Call 1-800-277-1620, option 8 to learn more.