Peo A Fit For You

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Discussion points on how a PEO and the Insurance Industry benefit from strategic relationships to help clients streamline their operations.

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<ul><li> 1. PEO: A Fit for You? PEO: A Fit for You? Presented by: eESI Ken Barge</li></ul> <p> 2. Agenda </p> <ul><li>What is a PEO? </li></ul> <ul><li>Interesting statistics!! </li></ul> <ul><li>PEOs- Solution to business administration needs </li></ul> <ul><li>Are all PEOs created the same? </li></ul> <ul><li>PEO Friend or Foe? </li></ul> <ul><li>Even PEOs love Healthcare Reform </li></ul> <ul><li>How do they get those cheap insurance rates? </li></ul> <ul><li>PEOs focus on the future </li></ul> <ul><li>Question - Is he finally finished? </li></ul> <p>PEO: A Fit for You? 3. Who Am I? </p> <ul><li>Professional Employer Organizations </li></ul> <ul><li>Former Property and Casualty Agent </li></ul> <ul><li>Current Life and Health Agent </li></ul> <ul><li>Former Workers Compensation Adjuster </li></ul> <ul><li>Bachelors HR Management</li></ul> <ul><li>Masters HR Development </li></ul> <ul><li>Teacher / Speaker / Internet Radio Show </li></ul> <p>PEO: A Fit for You? 4. What is a PEO? </p> <ul><li>P rofessionalE mployer O rganizations </li></ul> <ul><li>Enable clients to cost-effectively outsource </li></ul> <ul><li><ul><li>Management of human resources </li></ul></li></ul> <ul><li><ul><li>Workers compensation / Risk management </li></ul></li></ul> <ul><li><ul><li>Employee benefits </li></ul></li></ul> <ul><li><ul><li>Payroll administration </li></ul></li></ul> <ul><li>Clients focus on their core competencies </li></ul> <ul><li><ul><li>Drive innovation, productivity and profits</li></ul></li></ul> <p>PEO: A Fit for You? 5. PEO: A Fit for You? </p> <ul><li>What is a PEO? </li></ul> <ul><li>Co-Employment </li></ul> <ul><li>Contractual Agreement (CSA) </li></ul> <ul><li>Sharing of Employment Responsibilities:</li></ul> <ul><li><ul><li>Between PEO / Client / Employee </li></ul></li></ul> <ul><li><ul><li>Employer of Record </li></ul></li></ul> <ul><li><ul><li>Grouping of these employment responsibilities </li></ul></li></ul> <ul><li><ul><li><ul><li>Administration, Efficiencies and Innovation</li></ul></li></ul></li></ul> <p> 6. PEO: A Fit for You? 7. What is a PEO? </p> <ul><li>License requirements established by each state </li></ul> <ul><li>Regulated by the Department of Insurance </li></ul> <ul><li>SUI Account </li></ul> <ul><li><ul><li>Utilization of PEO experience modifier </li></ul></li></ul> <ul><li><ul><li><ul><li>Some states do require client modifier </li></ul></li></ul></li></ul> <ul><li>Workers Compensation </li></ul> <ul><li><ul><li>Non Monopolistic State </li></ul></li></ul> <ul><li><ul><li><ul><li>Private insurers </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Self-insurance allowed </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Texas is the Lone Star state; allows opting out of the system </li></ul></li></ul></li></ul> <p>PEO: A Fit for You? 8. What is a PEO? </p> <ul><li>Relatively new industry ~ 30 years </li></ul> <ul><li>Over 700 PEOs </li></ul> <ul><li>78 Billion dollars in revenue </li></ul> <ul><li>40 Accredited through ESAC </li></ul> <ul><li>Average client size ~ 19 employees </li></ul> <ul><li>Average wages $34,000 </li></ul> <ul><li>2-3 million employed under a PEO relationship </li></ul> <p>PEO: A Fit for You? 9. PEO: A Fit for You? 10. PEO: A Fit for You? 11. PEO: A Fit for You? 12. PEO: A Fit for You? PEOs Solutions to Business Administration Needs 13. PEOs- Solutions to Business Administration Needs </p> <ul><li>HR infrastructure and technologies </li></ul> <ul><li>Mitigate employment risk </li></ul> <ul><li><ul><li>Sharing of most employment liabilities </li></ul></li></ul> <ul><li>Compliance of regulations and future challenges </li></ul> <ul><li>Bundle of products and services </li></ul> <ul><li><ul><li>Increase profitability </li></ul></li></ul> <ul><li>Ultimately reducing cost and focusing on your business </li></ul> <ul><li><ul><li>Maximize productivity </li></ul></li></ul> <ul><li>What have we failed to say? </li></ul> <ul><li>Enhance benefit offerings </li></ul> <p>PEO: A Fit for You? 14. PEO: A Fit for You? Are All PEOs Created the Same? 15. Are All PEOs Created the Same? </p> <ul><li>All-Inclusive vs Carve out </li></ul> <ul><li>National vs Regional </li></ul> <ul><li>Accredited vs Non-Accredited </li></ul> <ul><li>Licensed vs Non-Licensed </li></ul> <ul><li>Large vs Small </li></ul> <ul><li>How do they manage risk? </li></ul> <p>PEO: A Fit for You? 16. PEO: A Fit for You? </p> <ul><li>Leadership and Culture </li></ul> <ul><li><ul><li>Disney Michael Eisner vs Robert Iger </li></ul></li></ul> <ul><li><ul><li>Smaller vs Larger agencies </li></ul></li></ul> <ul><li>Insurance agents and brokerage firms </li></ul> <ul><li><ul><li>Partnering with PEO opportunities </li></ul></li></ul> <ul><li><ul><li><ul><li>Larger regional insurance companies </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li><ul><li>Partnering with PEOs </li></ul></li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li><ul><li>Buying PEOs </li></ul></li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Why? Because it extends products and services within their business model and adds value to current relationships </li></ul></li></ul></li></ul> <p>PEO: A Fit for You? 17. PEO: A Fit for You? </p> <ul><li>Questions </li></ul> <ul><li>Whose client is it? </li></ul> <ul><li>Will I lose control?</li></ul> <ul><li>Is there revenue sharing? </li></ul> <ul><li>Can I keep my current benefits? </li></ul> <ul><li>Who holds the AOR? </li></ul> <ul><li>Who services the account? </li></ul> <ul><li>Is the PEO accredited? </li></ul> <ul><li>What are the competitive advantages of your PEO? </li></ul> <p>PEO: A Fit for You? 18. PEO: A Fit for You? Even PEOs Love Health Care Reform 19. Even PEOs Love Health Care Reform </p> <ul><li>Impact on PEOs </li></ul> <ul><li>How are they complying with the Act? </li></ul> <ul><li><ul><li>Small business tax credits </li></ul></li></ul> <ul><li><ul><li>Grandfathered plans </li></ul></li></ul> <ul><li><ul><li>Altered plans to comply with current regulations </li></ul></li></ul> <ul><li>Questions </li></ul> <ul><li><ul><li>Management carve outs </li></ul></li></ul> <ul><li><ul><li>Individual mandates </li></ul></li></ul> <ul><li><ul><li>Exchanges </li></ul></li></ul> <ul><li><ul><li>Pre Existing Conditions </li></ul></li></ul> <ul><li><ul><li>W-2 Reporting </li></ul></li></ul> <ul><li><ul><li>MLR </li></ul></li></ul> <p>PEO: A Fit for You? 20. How Do They Get Those Cheap Insurance Rates? </p> <ul><li>Multi-employer plans </li></ul> <ul><li><ul><li>Spread the risk </li></ul></li></ul> <ul><li><ul><li>Underwriting guidelines </li></ul></li></ul> <ul><li><ul><li>Design own plans</li></ul></li></ul> <ul><li><ul><li>Uncertain how Healthcare Reform will impact </li></ul></li></ul> <ul><li>Consumer driven health plans </li></ul> <ul><li>HRA/HSA/ GAP products/ </li></ul> <ul><li>Supplemental insurance </li></ul> <ul><li>Strategic alliances with brokers </li></ul> <p>PEO: A Fit for You? 21. PEOs Focus on the Future </p> <ul><li>Change </li></ul> <ul><li>Focus on service and strategy</li></ul> <ul><li>Growth and increase in competition</li></ul> <ul><li>Mergers and acquisitions</li></ul> <ul><li>Growth in PEO market share </li></ul> <p>PEO: A Fit for You? 22. PEO: A Fit for You? </p> <ul><li>Web:www.eesipeo.com/peopletalk_eevents </li></ul> <ul><li>Facebook:www.facebook.com/eEmployersSolutions </li></ul> <ul><li>LinkedIn:www.linkedin.com/company/eesi </li></ul> <ul><li>Twitter: @eESI_Talk </li></ul> <ul><li>Ken Barge:[email_address] </li></ul> <ul><li>Thank you to HAHU members and guestsfor the opportunity to participate at the July Luncheon. </li></ul>