PEO Group Health Insurance Premium Renewal Rates Increase

Professional Employers Experience Double Digitprimary care practice with 3 offices in West Virginia.
Increases AgainThey told us how their current PEO had just informed
Group health insurance premium renewals are goingthem that an entire network of plans was being
out and the reports are not encouraging. It's that timeeliminated. The majority of their employees will be left
of the year when employee leasing companies andwith just one option, and a very expensive one at that.
professional employers send small business ownersNeedless to say, they are now looking to us to help
their new health rates for the coming year. Employersthe doctors find a better option for their staff.
across the nation are being told what to expect, andIt May Only Be RoundOne?
it's not exactly what they want to hear. Especially now,The worst may be yet to come. September through
when the economy is starting to stabilize.January is when over 75% of group health insurance
Many of our small business clients who have beenplans are set to renew. This includes most of the
relying on their PEO partner to keep their healthnation's largest and most successful staff leasing, HR
insurance rates low, are finding out that it's no longeroutsourcing, and professional employer services firms.
the case. Business owners with some of America'sYet to announce their new health plan renewals are
best known and largest human resource outsourcingleading HR and employee benefits providers Advantec
firms, Administaff, ADP Totalsource, and TriNet /HR, Oasis Outsourcing, and SCI Staffing Concepts,
Gevity HR have experienced another round of doublewho are scheduled to renew in the month of October,
digit increases. CFO's and HR managers haveFrank Crum's health rates are good until November,
complained about increases from Alphastaff HR,and Accord HR and Fortune Business Solutions renew
another "Top 10" provider. Their clients renew inin January 2011.
September, and a few said they received costIt is important to note that while these industry giants,
masters with 35% rate increases across the boardand their highly compensated employee benefits
from Aetna.advisors, are still battling it out with their health insurers,
Bait and Switch?the fate of hundreds of thousands of small and
Many of our small business clients are learning thatmidsize businesses are being decided. Combined,
some of their health plan choices have been replacedthese PEOs and employee leasing companies
with new healthcare plans that offer more limitedrepresent about two hundred and fifty thousand
networks with fewer in-network providers, or of(250,000) business owners and about five million
medical plans that are restricted by geographical(5,000,000) employees nationwide. Let's hope for the
location. Just last week we were contacted by abest.