How Do I Reduce My Employee Benefits Cost?
There are many factors to consider in order to reduce the cost of employee benefits and still remain compliant with ACA. To start, you would need to gather the data for the most accurate census as possible. Incorrect data on the census will yield incorrect rates for plans. The data would include ages, genders, zip and coverage level. This information is now required for employees and any dependents.
A good agent will ask specific questions about the census to ensure the most accurate participation as possible. The agent should be familiar with current carrier's plans and rates relative to other carriers including the carrier your company is currently using.
Once the rates and plans come back from the carriers, the agent should layout your current plans side by side on large format paper so you can actually see the plan designs and rates. They should suggest comparable plans with favorable rates. The quoting process does not have to happen just at renewal. The fully insured group insurance agreement is unilateral meaning the carrier has to cover your group as long as you're paying the premium but you can cancel at any time.
All this information and accuracy, positions your company for the best possible rates and plans. A little extra work upfront to assure accuracy can save thousands on the back end. Read More ...
Do You Need An Analysis?
Whether you are with a PEO or out on the open market, you could be leaving money on the table. With the rapidly changing landscape of health care, employee benefits and workers' compensation, it really makes sense to take a close look at how much value you are getting for the money at least one time each year.
If it has been some time since your last analysis, connect with us and we'll walk you through it.
A client Mini case Study - Saving a local school over $21,000
We’ve been working with a small private school in Central Florida who has been with a PEO for several years. Since they were with a PEO, for many years, they assumed they were getting favorable pricing on all services including health insurance. After a thorough evaluation, we determined that we can save the school in excess of $21,000. We were able to get them comparable plans with the #1 rated J.D. Powers carrier.
The Takeaway:
If your company has been with the same insurance carrier or PEO for years, that's when you should definitely shop for alternatives. You may be getting a good deal but more often than not, we find because companies are "comfortable" with status quo they aren't getting a good deal at all. It is always smart to shop your employee benefits costs on an annual basis to make sure you are getting the most for your money.