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  • Americans work the majority of their lives with the hope of one day retiring and enjoying the fruits of their labor. Unfortunately, more and more people have to work well into their golden years without any end in sight. This is especially true for people that work for small businesses for the bulk of their career.

    Image of an employee with no money. Learn about the importance of a 401k and retirment plan for small businesses.

    Retirement Guide

    Small Business Retirement Planning Struggles

    According to a recent Crain’s article, “At companies with fewer than 50 workers, not even half the employees have access to a 401(k) or pension, according to the Bureau of Labor Statistics.” Small business owners are having trouble finding the time and money to create sustainable retirement plans for their employees.

    In a recent Business and Financial Planning Survey by CNBC and the Financial Planning Association, “42 percent of owners polled said that developing a retirement plan and exit strategy was their most pressing financial challenge, and 47 percent of advisors questioned said that only a fifth of their small business clients had any succession plan at all.”

    Recent studies show the huge advantages held by large corporations with economies of scale, in being able to offer affordable plans for a greater employee base. Between finding an affordable plan and a third-party to administer that plan, small business owners are struggling to keep up, which puts them at a disadvantage when it comes to recruiting talent. 

    These issues have led to several states looking into different avenues to help people save for retirement, according to Crain’s. “California, Maryland, Oregon, Illinois, and Connecticut are all setting up portable individual retirement accounts that can follow workers through their careers. Each state is requiring employers either to offer a retirement plan or to sign workers up for state-run, automatic IRAs.”

    Policies are being discussed in hopes of helping small business owners remain competitive in the recruitment of talent, while still giving employees the flexibility of opting not to make contributions to a retirement plan if they choose. 

    Retirement Planning for Small Businesses

    One great option small businesses can explore, is partnering with a Professional Employer Organization like Group Management Services. We have partnered with over 1,000 businesses in outsourcing Payroll, Human Resources, Risk Management, and Benefits like 401(k) plans. Due to the volume of companies we work with, we are able to offer an affordable plan on the same level as large companies. Contact us today to learn more about how we can help your business with retirement plans.

  • As a sales rep for a Professional Employer Organization, I have spent the last four years talking with business owners who were worried about the impact of the Affordable Care Act on their businesses and employees. In many cases, I helped them find a cost-effective solution that helped them gain control of one of their most uncontrollable costs. Sometimes, I didn’t. Sometimes, the uncertainty of the previous two election cycles caused them to freeze up, maintain their status quo and hope for the best.

    Now, we are about to embark on the Donald Trump era. For many, this is a sign that the ACA is going away and they can go back to things as they were. Perhaps so, but were things all that great before?  

    The reality is that it’s impossible to predict with any certainty what will happen in the next 12 months, let alone the next two years. A recent article on Smart Business’ website does have some thoughts on it that I would like to share and expand on.

    Image of the ACA. Learn about how the ACA may affect businesses in 2017.

    The Future of the ACA

    As the article states, the Senate would require 60 votes to repeal the ACA. If everyone votes strict party lines, there aren’t enough votes to make that happen. Still the Republicans have other tactics at their disposal, particularly budget reconciliation, the same tactic that was used to pass it in the first place. This would only impact the parts that deal with revenue and expenditures (i.e., individual mandates, premium tax credits, penalty taxes, etc.). It would have to leave many parts of the law in place. Some of those are very popular components like covering pre-existing conditions, extending children’s stays on parent’s policies until the age of 26, and prohibition on annual and lifetime limits on essential coverages.

    Due to the political nature of this legislation, anything happening soon is unrealistic. There are too many people that are already on some sort of ACA plan, meaning they’re committed to this for at least a year. Anything happening long-term would most likely be a hybrid program at best.

    If you’re having trouble wrapping your head around all of this or just want to look at exploring some innovative options, a PEO like GMS can help you explore some great alternatives. Contact us today to learn more.

  • Employers often wonder if a wellness program can truly fit into their workforce demographic. Every employee’s needs can vary depending on their job description and working environment. Nowadays, this could mean work that is sedentary office-based, labor intensive, extended shifts, travel, working from home, and more. The good news is that there is a way to provide specific information to any diverse demographic. 

    Image of a diverse workplace with a workplace wellness program.

    Health Risk Assessments are beneficial for employers.

    Data gathered from Health Risk Assessments can provide employers the most accurate analysis on the health status and health risks of their employees. According to an article in the Journal of Occupational and Environmental Medicine, “Health Risk Assessments originally were designed to predict the probability of common causes of death based on an individual’s lifestyle and biometric risk factors.” With time and continued research, health care providers have found these assessments to provide so much more. 

    On an individual level, it can provide specific data based on their self-report of health history and status. On an employer level, it can help provide structure and specific information in all future efforts made with worksite health promotion. If employees are willing to participate in an HRA, the next step is to adopt a worksite wellness program to address those modifiable health risks among the workforce.

    What is a Health Risk Assessment?

    An HRA may consist of several different components. Its primary form involves a questionnaire about an individual’s health history and health status. After that, it may be accompanied with a Biometric Screening that may include blood pressure, height, weight, body mass index, cholesterol, or glucose testing. Participation of an HRA is completely voluntary, but when paired with a specific type of Workplace Wellness Program, it can be made mandatory.

    What good comes from knowing the risks of your population if nothing is implemented to help improve those specific risks?  

    Federal regulations do apply when collecting such personal information. According to the Kaiser Family Foundation, “medical information obtained by any program may only be provided to the employer in aggregate terms that do not disclose or are not reasonably likely to disclose the identity of any employee.” Collected information must be kept confidential, secure, and separate from all other employment records and you must stay in compliance with federal, state, and local laws.

    How can a Wellness Program help tackle health risks in your workforce?

    A wellness program can offer several different services, which can positively influence your employee’s health and overall well-being. Some examples of these services include:

    • Health risk assessments
    • Health screenings
    • Lifestyle management services
    • Lunch and learns
    • Disease management services
    • One on one communications
    • Monthly newsletters
    • Informational meetings
    • Exercise demonstrations

    What research has found is that the delivery of healthcare information needs to move outside of the clinical environment to reach and influence a larger population, such as schools, work, community based organizations, etc. 

    After an organization adopts a healthier outlook, the next step is to provide ongoing support for those individuals, which is exactly what a wellness program can provide for you.  Contact GMS today to learn more about setting up a Workplace Wellness Program for your employees.

  • One of the largest contributors to mental health problems in the workplace is stress. Not only are mental health issues difficult to recognize, we also cannot assume an employee’s stresses from everyday life are checked at the door when they arrive at work every morning.

    Everyday life stresses coupled with the pressures that work brings could be detrimental to both the employee and the business. This can have serious impact on an employee’s overall health and employers must take the appropriate steps to protect both the employees and the business.

    Image of a stressed out employee.

    Stress in the Workplace

    This begs the question, how can stressed out employees affect a business? Several factors combine to impact the business negatively:

    • Poor performance
    • Increased human error
    • Mental lapses
    • Lack of motivation
    • Workplace accidents

    These factors combined could determine the employee’s likelihood to quit or could end up being the reason for their termination. The resulting increase in turnover costs a businesses, and even the economy, a lot of money. 

    Workplace stress, according to Dr. David Posen, “is costing the American economy hundreds of billions of dollars each year in lost productivity and health care expenses.” Beyond the workplace effects, the stress and mental health issues could have serious physical implications on the individual, including: 

    • Heart disease
    • Headaches
    • Depression
    • Anxiety
    • Medication abuse

    What Employers Can Do About Stress

    There are numerous steps employers can take to prevent mental issues from entering the workplace. This process can start with proper management training to promote:

    • Effective communication
    • The setting of achievable goals
    • Adequate lifetime training for employees
    • Teamwork/team first workplace 

    On top of these steps, many companies offer Employee Assistance Programs (EAP) to help make sure their stress is appropriately managed. It’s important to set expectations with each employee and keep these expectations realistic and reasonable to help employees manage their workload and stress levels. Coupled with heavy workloads and daily stresses from everyday life, it is imperative to offer your employees paid time off (PTO) and encourage them to take full advantage of it to help them minimize their stress and maximize their workplace efforts. Lastly, employers can offer their employees a corporate wellness program to help promote the overall physical, mental, and emotional health of their workforce. 

    Partner with a PEO to Limit Workplace Stress

    Workplace stress management is a lot to keep up with, especially while you’re trying to simultaneously run a successful business. 

    A PEO can help your employees stay happy, healthy, and productive while you make sure business is operating smoothly and successfully. GMS offers one-on-one management training to help you with employees’ stress, difficult situations that arise, and several other areas of concern. GMS also partners with a company called ESPYR to provide a completely customizable Employee Assistance Program (EAP) to help promote overall company wellness. Customizable GMS EAP services can include:

    • Legal consultation provided by attorneys
    • Financial consultation 
    • Prenatal program
    • Child care information and referrals 
    • Elder care services
    • Adoption specialists
    • Academic resources 
    • Pet care services 
    • Life event services 
      • Such as birth, death, marriage, divorce, natural disasters, end of life services
    • Special needs services and referrals

    The EAP offered through GMS also provides:

    • Up to four sessions per problem for face-to-face counseling and referral for a full range of personal, family, and work concerns
    • Telephonic and video access to counseling 
    • 24/7 toll-free telephone access to mental health professionals 
    • Multilingual counselors and staff and multilingual interpreter services available in 140 languages

    GMS recognizes that a business’ most important assets are its employees. If business owners can take the appropriate steps to promote the well-being of their employees, it can only help to maximize the company’s potential. Contact GMS today to talk to one of our experts about taking the next step toward managing workplace stress.

  • It can be very difficult for small business owners to compete with big companies when it comes to 401(k) plans. Due to their size, large corporations can use economy of scale to their advantage and offer attractive retirement plans that are more affordable due to the size of their employee base. 

    Small business owners don’t have hundreds of employees to their name, but that doesn’t mean that they can’t have access to economies of scale through other resources. 

    How a PEO Can Provide New 401(k) Advantages

    Small business owners are typically subjected to a lot of costs when they manage their own 401(k) plan, which can scare off some employers. The Pew Charitable Trusts conducted a survey with small- and medium-sized businesses that don’t offer a 401(k) to employees and found that 71 percent of these business claimed that the associated expenses played a role in their decision to forgo a retirement plan. 

    Without some help, those costs can quickly add up over time. There can be a lot of set-up fees and other miscellaneous charges to maintain plan documents. Most employers are also not experts of retirement planning, so they also need to hire a Third-Party Administrator to handle their 401(k) plan for them.

    Small businesses aren’t going to match the output of a big corporation. With a Professional Employer Organization like Group Management Services, they don’t have to. Since GMS represents over 1,000 different companies, we can provide companies with the same types of benefits that the large corporations get due to economy of scale. 

    Our Multiple Employer Plan creates a level of buying power that a lot of small businesses never get to have. That power can lead to a more diverse investment menu than they might be able to get on a single employer plan, as well as additional perks. We also handle 401(k) Plan administration in house with the aid of Transamerica, which allows us to cut down on the costs that employers would typically pay a Third-Party Administrator.

    The Multiple Employer Plan also relieves employers of many of the responsibilities attached to providing substantial fiduciary support for their plan. That includes the following:

    • Making sure that contributions get deposited in a timely fashion.
    • Selecting and monitoring the investments offered on the plan. We conduct quarterly meetings with our Financial Advisors to do our due diligence on the funds offered on our platform.
    • Making sure that plan documents are maintained and keeping our clients compliant.
    • Filing one 5500 to the DOL with our clients listed.
    • Offering access to a dedicated financial adviser and educational material. 

    Retirement Guide

    Use Economy of Scale to Your Business’ Advantage

    Economy of scale can help your business save big while providing a retirement plan your employees want. Contact us today to talk to one of our experts about our 401(k) plans for small businesses.

  • There are growing signs that the economy is improving. Perhaps the most notable marker is that more people are starting to come back to the workforce. The unemployment rate is continuing a downward trend, meaning that more employers are starting to hire again.

    Of course, finding good employees is important to a company’s growth, but keeping their best employees is vital to an employer’s productivity. Keeping your best employees ensures a smoother transition for newer employees and keeps the job environment stable with their most seasoned employees.

    Of course, with a growing job market, sometimes a company’s best employees begin looking at this as an opportunity to “test the waters” of their own value and see if there are better options. How does a small business owner retain good employees while attracting qualified candidates? By offering benefits.

    What Workers Want

    There are many benefits out there and employees put different values on each one. Which benefits should you offer? According to a Gallup poll in a recent post at Employee Benefits News, these are the 11 you should consider:

    1. Full-time flexible working locations (35%)
    2. Part-time flexible working locations (37%)
    3. Profit Sharing (40%)
    4. Paid leave for sick/medical/personal days (48%)
    5. Non-health insurance benefits like vision, dental, etc. (48%)
    6. Retirement plan/401(k) with employer matches (50%)
    7. Flex-time (51%)
    8. Retirement plan with defined benefits (51%)
    9. Paid vacation (53%)
    10. Monetary bonuses (54%)
    11. Health Insurance (61%)

    Of course, cost factors into this and not everyone can offer everything, so it becomes crucial for an employer to know which ones to offer. An employee survey can help set a course.

    Finding a trusted partner to help you set up a benefits plan and get them to you at an affordable cost becomes another issue. A Professional Employer Organization (PEO) like GMS can help create employee benefits policies and offer big company benefits at big company rates to help small business owners compete with larger companies for those great employees. Contact us today to talk with one of our benefits experts about your benefits package.

  • Small business owners weigh many factors when deciding whether to invest in a group health insurance plan, but oftentimes the decision comes down to dollars and cents. The Kaiser Family Foundation’s 2016 Employer Health Benefits Survey notes that the high costs of insurance premiums are the primary reason why firms won’t offer health benefits. Even for business owners who do offer plans, rising insurance premiums can create a lot of stress and confusion, especially if the owner doesn’t know how these premiums are calculated and how they can manage them.

    Employers can have many questions for group health providers, and that includes exactly how much they can expect to spend. Here’s a rundown on what the insurance industry uses to calculate your group health insurance coverage premium, as well as some strategies that can lead to lower costs.

    Image of group health insurance plan premiums for small business owners.

    How are Group Health Insurance Premiums Calculated?

    According to the KFF 2016 survey, the average family coverage premium is $18,412 per year and single coverage is $6,435 per year. Of course, every business is different, so your premium may end up being higher or lower depending on a variety of factors that are used to calculate the costs for your plan. These factors include the following.

    Size and Health of the Group

    The total number of people on your group plan can impact how much you pay. This number includes not only your employees who opt in to your plan, but also any family members who also opt in to your plan through an employee. A larger group of people can help lower your premium by spreading the associated health risks of a few people over an entire group.

    However, the overall health of a group does affect your premium. While the Affordable Care Act doesn’t allow insurers to change premiums or deny insurance based on an individual’s pre-existing conditions and overall health status, the American Academy of Actuaries notes that the overall health of the group can play a role in determining premiums.

    “If a risk pool disproportionately attracts those with higher expected claims, premiums will be higher on average,” the Academy writes. This factor can work in your business’ favor, as the Academy also notes that “If a risk pool disproportionately avoids those with higher expected claims or can offset the costs of those with higher claims by enrolling a large share of lower-cost individuals, premiums will be lower.”

    Average Age of the Group

    While the ACA no longer permits insurers to use certain factors like gender to alter premiums, it still allows insurers to consider age in premium determinations. According to independent actuarial and consulting firm Milliman, “rating by age is still allowed under the law as long as the ratio of the highest-cost adult age band to the lowest-cost adult age band does not exceed 3:1.” In a group plan, this means the average age of your group can play a part in what you pay.

    An Employer’s Claims History

    All those visits to the doctor can add up. Insurance providers use the number of total claims and how expensive those claims are to determine adjustments to your premiums over time. When it’s time to renew your policy, an insurer will review your group’s claims history and adjust accordingly. If a few employees had some medical issues that led to frequent or costly visits, that may be reflected on your updated premium cost.

    Type of Occupation

    Different lines of work carry different levels of risk. Your insurance provider may adjust your rates depending on the general occupation of your workers. For example, clerical staff don’t face the same health risks as factory, construction, or offshore workers, so insurance premiums for a group of office workers may be less than other occupations.

    The Type of Coverage and Desired Add-on Benefits

    Not all small business health plans are the same. The level of coverage will play a big role in how much you and your employees pay. Better coverage and lower out-of-pocket costs can lead to higher premiums. Bundling extra add-ons such as dental and vision plans can also increase your premiums due to the extra coverage.

    How Can I Save on Group Health Premiums?

    Health insurance premiums can be expensive for a small business owner, but you don’t necessarily have to resign yourself to what your company is being charged. There are potential strategies that you can use to help you lower your costs and improve the health of your employees.

    Workplace Wellness Program

    Since the number of claims has a direct impact on your premiums, it can pay to improve the overall health of your employees. A customized workplace wellness program can help foster healthier lifestyle choices through health education and wellness activities. This in turn can lead to fewer doctor’s visits caused by preventable diseases, leading to a healthier, more active workforce and lower overall premiums. 

    Telemedicine

    Another way to limit the number of doctor’s visits is to give your employees access to a 24/7 mobile doctor. Telemedicine services give your employees the freedom to connect with a professional physician via phone, video, or online chat. This allows them to get the answers they need without having to schedule an in-person appointment with the doctor, meaning no copay for them and no extra claim for your plan.

    Economy of Scale

    Depending on where you get your insurance from, you may be able to take advantage of economy of scale. While larger companies have more employees and greater buying power, smaller business don’t have quite the workforce to take advantage of savings associated with economy of scale. However, a Professional Employer Organization can give you the buying power to lower premium costs. 

    A PEO can leverage the collective buying power of all their group health clients, acting as one large company that can purchase plans at lower premiums as a result. This helps your business avoid costly administration fees and save without sacrificing on the quality of your group plan. 

    Partnering with a PEO also opens you up to cost-saving strategies such as wellness programs, telemedicine services, and more. If you’re interested in learning more about how a PEO can help your business save on insurance premiums and make your businesses a healthier place, contact GMS today.

  • It’s always a good idea to get more information, especially when your business is investing in something as important as health care. For an employer, that extra information is essential when finding the right group health coverage.

    Even if you have a good grasp on the basics of group health insurance, it doesn’t hurt to ask a provider a few important questions before you purchase a plan for your business. Here are some key things that you should ask a provider when you’re ready to buy group health insurance coverage.

    Five Questions Small Businesses Should Ask Group Health Providers

    What are the different plan options available to my business?

    If you choose to offer health benefits, there are several types of group plans that you can offer to your employees. These plans include:

    • Fully-insured plans
    • Self-funded plans
    • Level-funded plans
    • PPO (preferred provider organization)
    • HDHP/SO (high-deductible health plan with a savings option)
    • POS (point-of-service plan)
    • HMO (health maintenance organization)

    Each one of these types of plans offer different types of benefits. As such, some plans may be better suited for your business than others. For a breakdown on the advantages and disadvantages of each type of plan, check out our post on the different types of group health insurance.

    While many businesses offer only one type of plan, that doesn’t mean that your organization is limited to a single offering. According to the Kaiser Family Foundation (KFF) 2021 Employer Health Benefits Survey, 25% of organizations offer two or more plan types in an effort to diversify and improve their overall benefits package for employees.

    What does my plan cover?

    If you’re going to purchase something, you should know what you’re getting. Make sure to ask your group health insurance provider for a detailed breakdown of what your plan covers so that you and your employees know what to expect.

    It’s also important to ask about additional benefits, such as dental and vision insurance. While some plans have add-ons for ancillary benefits, it’s not always the case. That distinction is important because nearly 90% of employees would consider a lower-paying job in exchange for better health, dental, and vision insurance. Your plan plays a pivotal role in attracting and retaining talent, so make sure your provider gives you everything you need to know about your plan coverage.

    How much will group health insurance cost me?

    According to KFF, the average annual health insurance premiums in 2021 are $7,739 for single coverage and $22,221 for family coverage. Employers contribute an average of $6,440 and $16,253 for single and family coverage respectively.

    Of course, those numbers are just the averages. Your business’ exact health insurance costs can go up or down depending on a variety of factors. The specific factors that insurance agents use to determine group health premiums include:

    • Size and health of the group
    • Average age of the group
    • An employer’s claim history
    • Type of occupation
    • Type of coverage and add-on benefits

    Who should my plan cover?

    As an employer, you do need to abide by some ground rules in terms of who is eligible for group health insurance coverage. Any business that provides health coverage must offer it to all full-time equivalent employees. However, that does mean that employers have some wiggle room in terms of part-time employees and family members.

    Simply put, employers can either decide to offer coverage to all part-time employees or none at all. The same principle applies to family members and dependents of eligible employees. Not offering coverage to these groups can help lower your costs, but may make your plan less attractive to certain employees. As such, you’ll want to iron out these details and determine which options align best with your business’ needs when buying group health insurance.

    Who can help me if I have any questions or problems?

    You shouldn’t feel like you’re stranded on an island when you have questions about health insurance. A good health insurance provider should have a team in place that can assist you with any potential questions and issues in the future.

    Ask each provider about their customer service to find out who your contacts will be and how their process works. If they don’t give you many details about who can help you, that’s a red flag that they may not have your back in the future.

    Group Health Insurance Coverage From A PEO

    It can be a tricky to find an attractive group health plan that won’t break the bank. Fortunately, a Professional Employer Organization may be able to help you find the best of both worlds.

    At GMS, we can help you choose a group health insurance plan that’s right for you and your employees. Thanks to a higher collective buying power and other cost-prevention strategies, GMS can help you lower your premiums and help you save. We also have the experts to help you make informed decisions about benefits management and oversee plan administration so that you have time to focus on the rest of your business.

    Ready to invest in quality group health insurance at a lower cost? Contact us today to talk to one of our experts about what we can do for your business.

  • Managing health insurance for a small business can get complex in a hurry, especially if you’ve never dealt with group plans before. When it comes to small business health plans, you’ll quickly find that not all health insurance plans work the same way.

    Instead of getting overwhelmed, it’s a good idea to step back, take a breath, and start with the basics. Let’s go over what you should know about small company health insurance before you start offering plans  to your employees.

    Image of financial documents for group health insurance coverage. 

    What’s the Difference Between Group Health Insurance and Other Types of Insurance Plans?

    Investopedia defines a group health insurance plan as “a plan that provides healthcare coverage to a select group of people.” As an employer, this is the type of plan that you would typically offer your employees as one of their major benefits. 

    However, people can also opt for an individual health insurance policy. In this case, an individual person can purchase an individual health insurance policy that covers one person or that person’s family. However, these individual people can also opt to be covered by their employer’s group health plan instead, if it’s offered by the employer.

    Another key difference between group health insurance and individual plans is the how an insurer will determine your premium. Individual plan premiums are based on the medical history on an individual or a family. Group health insurance operates with a much larger group of people, which means that they will balance the risk factors of the entire group to determine your premium. This can help lower premiums by spreading the associated risks over the entire group.

    There’s also different types of group plans, such as fully-insured group health plans and self-insured plans, also known as self-funded plans. A fully-insured plan is the more traditional option, where the insurer sets premium rates for the year, collects those premiums, and pays for claims based on your plan. A self-insured plan allows a business to be in control of its own plan. 

    Self-funding can be risky for small businesses worried about potential losses from claims, but it can help them save by eliminating the additional fees that insurance companies apply to their premiums. One way to get protect your business from potential losses is by investing in a stop-loss policy that allows you to evaluate savings and exposure. If that sounds intriguing to you, check out our post on why self-funded health insurance might be right for your business.

    Do I Have to Offer a Group Health Coverage?

    Yes and no, depending on your business. The Affordable Care Act (ACA) mandates that Americans have health insurance and can penalize those without coverage. However, small businesses with fewer than 50 full-time equivalent employees aren’t necessarily required to provide health insurance to its employees. Still, it can be a good idea to do so.

    According to a survey by the Society for Human Resource Management (SHRM), 95 percent of HR professionals named health care benefits as one of the benefits most important to their employees. SHRM also cites that 29 percent of employees looking to leave their job do so because they want a better overall benefits package. Quality medical insurance for small companies can serve as a great tool to retain talented members of your team and attract other skilled workers.

    What are My Responsibilities if I Offer Group Health Insurance?

    If you do offer group health insurance to your employees, you’re going to have to follow a few rules set by the ACA. To start, if you do offer a group health insurance plan to your full-time employees, you must offer it to every single one of them. You can’t pick and choose who gets coverage and who doesn’t and you can’t deny coverage to employees with preexisting conditions. You can also choose to offer coverage to part-time employees as well. Keep in mind that your employees have the option to extend their benefits to their families as well.  

    Of course, there are also financial responsibilities attached to offering health care coverage.

    Other responsibilities include:

    • Covering Essential Health Benefits in the group health insurance plan
    • Offering health insurance to new employees within 90 days of their start date
    • Providing employees with a Summary of Benefits and Coverage

    Managing Group Health Insurance for Your Business

    Even once you know the basics, it can be difficult to handle your group health insurance coverage and deal with rising premiums at the same time. A Professional Employer Organization can provide you with the expertise to offer quality insurance for your employees and the buying power and cost-prevention strategies to lower those costly premiums. Contact us today to talk to one of our small business medical insurance experts about how we can help you offer a quality healthcare plan to your employees.

  • Towards the end of July, the Republican Party made a couple of attempts to repeal and replace the Affordable Care Act. When the Senate couldn’t pull together a consensus on a replacement bill, they moved forward with a straight repeal bill. Both attempts failed.

    Where does that leave a business owner who’s trying to figure what to do about healthcare? Two recent articles help shed a little light on what to expect.

    The Potential Future of Healthcare

    According to a recent Forbes article,  large employers will escape significant increases this year. They can expect something along the lines of the 5% average increases they’ve gotten the last several years. The expectation is that the 2018 renewals are where things will begin to implode.

    Unfortunately, individuals on the exchanges will see significant increases as the exchanges have been collapsing for the last few years and states are scrambling to try and prop them up for this year. Couple that with the Trump administration’s uncertainty on whether to continue subsidies, and this could lead to another issue for employers.

    If an employer is already offering healthcare, but excluding the part-time help (29 hours or less), they may see a push from those employees to be included in the group plan. Business owners will then have to decide what is best for the employees and for the business, but the situation could create some significant HR issues. Employee Benefits News lists this as one of the bigger issues arising from the uncertainty.  

    Lastly, no one is even certain how the IRS will respond to policy changes or how they will enforce them. The IRS already had issues collecting taxes on the uninsured in recent years and now have new potential hurdles.

    Prepare Your Business for Changes in Healthcare

    If your head is swimming from all of this and need help, or you’re simply looking for large group healthcare rates, consider reaching out to a Professional Employer Organization like GMS. We have a team of experts that can help you ride out these choppy waters, so contact us today to learn more about our group health coverage and other ways we can help your business.