peo a fit for you
DESCRIPTION
Discussion points on how a PEO and the Insurance Industry benefit from strategic relationships to help clients streamline their operations.TRANSCRIPT
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PEO: A Fit for You?
PEO: A Fit for You?
Presented by: eESI
Ken Barge
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PEO: A Fit for You?
Agenda
• What is a PEO?
• Interesting statistics!!
• PEOs - Solution to business administration needs
• Are all PEOs created the same?
• PEO Friend or Foe?
• Even PEOs love Healthcare Reform
• How do they get those cheap insurance rates?
• PEOs focus on the future
• Question - Is he finally finished?
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PEO: A Fit for You?
Who Am I?
• Professional Employer Organizations
• Former Property and Casualty Agent
• Current Life and Health Agent
• Former Worker’s Compensation Adjuster
• Bachelors HR Management
• Masters HR Development
• Teacher / Speaker / Internet Radio Show
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PEO: A Fit for You?
What is a PEO?
Professional Employer Organizations
• Enable clients to cost-effectively outsource
– Management of human resources
– Worker’s compensation / Risk management
– Employee benefits
– Payroll administration
• Clients focus on their core competencies
– Drive innovation, productivity and profits
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PEO: A Fit for You?
What is a PEO?
Co-Employment
• Contractual Agreement (CSA)
• Sharing of Employment Responsibilities:
– Between PEO / Client / Employee
– Employer of Record
– Grouping of these employment responsibilities
• Administration, Efficiencies and Innovation
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PEO: A Fit for You?
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PEO: A Fit for You?
What is a PEO?
• License requirements established by each state• Regulated by the Department of Insurance• SUI Account
– Utilization of PEO experience modifier• Some states do require client modifier
• Worker’s Compensation– Non – Monopolistic State
• Private insurers• Self-insurance allowed• Texas is the “Lone Star” state; allows opting out of the
system
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PEO: A Fit for You?
What is a PEO?
• Relatively new industry ~ 30 years
• Over 700 PEOs
• 78 Billion dollars in revenue
• 40 Accredited through ESAC
• Average client size ~ 19 employees
• Average wages $34,000
• 2-3 million employed under a PEO relationship
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PEO: A Fit for You?
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PEO: A Fit for You?
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PEO: A Fit for You?
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PEO: A Fit for You?
PEOs – Solutions to Business Administration Needs
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PEO: A Fit for You?
PEOs - Solutions to Business Administration Needs
• HR infrastructure and technologies
• Mitigate employment risk– Sharing of most employment
liabilities
• Compliance of regulations and future challenges
• Bundle of products and services– Increase profitability
• Ultimately reducing cost and focusing on your business– Maximize productivity
What have we failed to say?
• Enhance benefit offerings
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PEO: A Fit for You?
Are All PEOs Created the Same?
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PEO: A Fit for You?
Are All PEOs Created the Same?
• All-Inclusive vs Carve out
• National vs Regional
• Accredited vs Non-Accredited
• Licensed vs Non-Licensed
• Large vs Small
• How do they manage risk?
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PEO: A Fit for You?
PEO: A Fit for You?
• Leadership and Culture
– Disney Michael Eisner vs Robert Iger
– Smaller vs Larger agencies
• Insurance agents and brokerage firms
– Partnering with PEO opportunities
• Larger regional insurance companies– Partnering with PEOs
– Buying PEOs
• Why? Because it extends products and services within their business model and adds value to current relationships
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PEO: A Fit for You?
PEO: A Fit for You?
Questions
• Whose client is it?
• Will I lose control?
• Is there revenue sharing?
• Can I keep my current benefits?
• Who holds the AOR?
• Who services the account?
• Is the PEO accredited?
• What are the competitive advantages of your PEO?
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PEO: A Fit for You?
Even PEOs Love Health Care Reform
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PEO: A Fit for You?
Even PEOs Love Health Care Reform
Impact on PEOs
• How are they complying with the Act?– Small business tax credits
– Grandfathered plans
– Altered plans to comply with current regulations
• Questions– Management carve outs
– Individual mandates
– Exchanges
– Pre – Existing Conditions
– W-2 Reporting
– MLR
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PEO: A Fit for You?
How Do They Get Those Cheap Insurance Rates?
• Multi-employer plans
– Spread the risk
– Underwriting guidelines
– Design own plans
– Uncertain how Healthcare Reform will impact
• Consumer driven health plans
• HRA/HSA/ GAP products/Supplemental insurance
• Strategic alliances with brokers
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PEO: A Fit for You?
PEOs Focus on the Future
• Change
• Focus on service and strategy
• Growth and increase in competition
• Mergers and acquisitions
• Growth in PEO market share
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PEO: A Fit for You?
• Web: www.eesipeo.com/peopletalk_eevents
• Facebook: www.facebook.com/eEmployersSolutions
• LinkedIn: www.linkedin.com/company/eesi
• Twitter: @eESI_Talk
• Ken Barge: [email protected]
Thank you to HAHU members and guests for the opportunity to participate at the July Luncheon.