PEOs have the following rating differences versus the small group market:
- Can give full credit to younger than average groups
- Will evaluate employee health status and adjust rates for both healthy and unhealthy groups
- Can rate by industry
- PEOs can still use composite rates, rather than the 46 age bands small groups will face this year
These rating methods will be extremely important as well to groups of 50-99, who face these same community rating limitations in 2016.
There are other advantages to PEOs aside from the health insurance offerings. PEOs offer an enormous amount of administrative and HR assistance beyond administering benefits:
- Benefit enrollment and insurance bill reconciliation
- Outsourcing of payroll responsibilities and tax filing liabilities
- Providing a robust HRIS system, included with the administrative fee
- Fighting Unemployment and EEOC Claims
- Handling disciplinary actions
- Providing outsourced HR services as needed
PEOs are not right for everyone, but may offer a significant opportunity to the right company. To help you decide if this strategy is right for you, Fall River offers PEO Analysis, to evaluate multiple PEOs and make an accurate comparison of the costs and differences. Let us know if we can help you consider this approach.
