With Health Care Reform attempting to broaden the population that receives health care coverage, the landscape is getting increasingly complex—and expensive. Employer health insurance premiums went up on average about 9% in 2011.
According to global services advisory and research firm Everest Group, benefits administration outsourcing has increased significantly in recent years because of the employers’ need for help to comply with health care reform measures. Their Benefits Administration Outsourcing Annual Report estimates the benefits administration outsourcing market is about $5.4 billion in annual contract value and finds that employers are outsourcing health and welfare services at four times the rate they are outsourcing pension-related services.
Benefits administration outsourcing is one of the largest and most mature markets in human resources outsourcing. Buyers are increasingly turning to outsourced service providers, including PEOs. PEOs help employers navigate the complex legislations and compliance requirements, in addition to achieving cost reductions. PEOs have access to Fortune 500 quality health insurance packages plus previously unavailable benefits such as 401(k), Section 125 plan and Flexible Spending.
Solutions that meet employers’ current and future needs and offer differentiated offerings in a highly competitive environment are key contributors to a PEO’s success. But with over 800 PEOs to choose from, even finding a PEO can be difficult, never mind finding the right benefits! Introduced in 2011, PEO Advantage is the only PEO broker who guarantees to find you the perfect PEO, and delivers an in-depth risk-free evaluation that consistently saves clients over 25%.
PEO Advantage’s streamlined yet comprehensive process includes in-depth analysis, a proprietary reverse auction RFP process, easy-to-read reports, side-by-side comparisons that clearly show value and savings, cost projections and expert recommendations. PEO Advantage takes all the guesswork and hassle out of choosing the best PEO organization and gives employers everything they need to make an informed decision.
If you need help selecting a PEO for your organization, contact us.