peo a fit for you
Post on 26-Jun-2015
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DESCRIPTIONDiscussion points on how a PEO and the Insurance Industry benefit from strategic relationships to help clients streamline their operations.
- 1. PEO: A Fit for You? PEO: A Fit for You? Presented by: eESI Ken Barge
- 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?
PEO: A Fit for You? 3. Who Am I?
- Professional Employer Organizations
- Former Property and Casualty Agent
- Current Life and Health Agent
- Former Workers Compensation Adjuster
- Bachelors HR Management
- Masters HR Development
- Teacher / Speaker / Internet Radio Show
PEO: A Fit for You? 4. What is a PEO?
- P rofessionalE mployer O rganizations
- Enable clients to cost-effectively outsource
- Management of human resources
- Workers compensation / Risk management
- Employee benefits
- Payroll administration
- Clients focus on their core competencies
- Drive innovation, productivity and profits
PEO: A Fit for You? 5. PEO: A Fit for You?
- What is a PEO?
- Contractual Agreement (CSA)
- Sharing of Employment Responsibilities:
- Between PEO / Client / Employee
- Employer of Record
- Grouping of these employment responsibilities
- Administration, Efficiencies and Innovation
6. PEO: A Fit for You? 7. 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
- Workers Compensation
- Non Monopolistic State
- Private insurers
- Self-insurance allowed
- Texas is the Lone Star state; allows opting out of the system
PEO: A Fit for You? 8. 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
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
- 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
PEO: A Fit for You? 14. PEO: A Fit for You? Are All PEOs Created the Same? 15. 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?
PEO: A Fit for You? 16. 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
PEO: A Fit for You? 17. PEO: A Fit for You?
- 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?
PEO: A Fit for You? 18. PEO: A Fit for You? Even PEOs Love Health Care Reform 19. 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
- Management carve outs
- Individual mandates
- Pre Existing Conditions
- W-2 Reporting
PEO: A Fit for You? 20. 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
PEO: A Fit for You? 21. PEOs Focus on the Future
- Focus on service and strategy
- Growth and increase in competition
- Mergers and acquisitions
- Growth in PEO market share
PEO: A Fit for You? 22. PEO: A Fit for You?
- Twitter: @eESI_Talk
- Ken Barge:[email_address]
- Thank you to HAHU members and guestsfor the opportunity to participate at the July Luncheon.