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Survey Shows 94% of PEOs Expect an Increase in Employees

Survey Shows 94% of PEOs Expect an Increase in Employees

Survey Shows 94% of PEOs Expect an Increase in Employees

Businessman pressing a People concept button.

 Professional Employer Organizations (PEO)  growth doesn’t appear to be slowing down. Earlier this year, NAPEO released the results from there 2017 Q3 Industry Pulse Survey. The findings showed that PEOs are continuing to grow, and at an impressive pace. In the report, 72% of PEOs reported revenue growth in Q3 of 2017, compared to Q3 of 2016.

With all that is happening with employment laws, healthcare and health insurance, and other areas of HR that impact small and medium-sized businesses (SMBs), it is easy to see why PEOs and other HR outsourcing options are seeing, in many cases, rapid industry growth.

Now, NAPEOs latest Quarterly Pulse Survey, which compared the 4th quarter of 2017 to the 4th quarter of 2016, shows that PEO growth is still occurring, and will almost certainly continue in 2018 and beyond.

DATA FROM THE 2017 Q4 NAPEO PULSE SURVEY

The NAPEO Quarterly Pulse Survey – Q4 2017 was conducted in early 2018, and was taken by 32 PEO executives.

The first result from the survey looked at PEO revenue. 71.9% of PEO executives said their organization’s revenue increased in Q4 of 2017, compared to Q4 of 2016.

Broken down further, 50% said that revenue increased somewhat, and 21.9% said revenue increased significantly.

Next, the survey showed that PEOs experienced an increase in the average annual wage per worksite employee (WSE), with 65.5% of executives responding.

NAPEO’s findings also revealed that 66% of PEOs saw an increase in gross profit. Of this 66%, 43.3% said gross profit increased somewhat, while 23.3% said it increased significantly.

OPERATING INCOME, NUMBER OF CLIENTS, AND WSE PROJECTION DATA

The next group of results from the survey uncovered data around operating income, the number of clients, and worksite employee projection information.

First, the report showed that 65.7% of PEO executives reported an increase in operating income in the 4th quarter of 2017, compared to the 4th quarter of 2016. The 65.7% can be broken down further, with 43.8% saying that operating income increased somewhat, and 21.9% increasing significantly.

Next, 59.4% of PEOs said that the number of clients increased, while 31.3% said that the number of clients stayed about the same. Of the 59.4%, 50% said that clients increased somewhat, and 9.4% said clients increased significantly.

Lastly, the survey asked PEO executives about worksite employee (WSE) projections over the next 12 months.

Perhaps the most promising and impressive statistic found in the quarterly survey, almost 94% expect WSEs to increase. Here is the full breakdown:

  • 71% expect EE to increase somewhat
  • 22.6% expect EE to increase significantly
  • 3.2% expect EE to stay about the same
  • 3.2% expect EE to decrease somewhat

With PEOs seeing an increase in revenue throughout 2017, and executives overwhelmingly expecting EE  to increase over the next 12 months, revenue outlooks for the rest of 2018 and into 2019 look extremely promising throughout the PEO industry.

PROFESSIONAL EMPLOYER ORGANIZATIONS CONTINUE TO THRIVE

Much like the last few Quarterly Pulse Surveys from NAPEO, the 2017 Q4 survey shows that despite all of the uncertainty and complexity with various areas of HR, PEOs continue to grow.

Regarding the survey, Pat Cleary, President & CEO of NAPEO, said, “This is just the latest example that more and more business owners are realizing the true value of using a PEO. Surveys and studies consistently show that using a PEO is good for a business and its employees. PEOs provide a real benefit to businesses by providing HR services and solutions that they would otherwise be unable to afford.”

Some additional findings from the survey include:

  • Average annual wage per WSE increased somewhat
  • Average number of WSEs per client company stayed about the same
  • Number of internal employees (including salespeople) stayed about the same
  • Number of Worker’s Compensation claims reported to carrier stayed about the same

The survey also revealed that the average PEO has 19 worksite employees per client.

What’s the difference between co-employment and employee leasing? PEO and Employee Leasing. What’s the Difference.

Learn how a PEO can help grow your business.  Check out PEO Case Studies here and learn how they can apply to you.

Click below for a free PEO assessment. Our PEO Quoting Tool ensures that we have first-hand insight as to what the small business owner needs to be successful.

Case Study: Law Firm and PEO Solution

Case Study: Law Firm and PEO Solution

Case Study: Law Firm and PEO Solution

Professional Services: New York Law Firm’s Benefit Benchmark Study Reveals Gap In Offerings

A law firm with a benefit offering below the New York law firm benchmark, no HR person on staff, no formal recruitment strategy and no employee development plan was struggling to attract top lawyers and paralegals, and to keep top producers. This was affecting their stability, employee morale, and ultimately, their bottom line. After losing one of their highest billing attorneys and a key associate to a larger firm with more robust benefit offerings, they realized they needed to make an immediate and drastic change to recruit and retain quality employees.

SOLUTION

Our PEO partner immediately assigned a seasoned Human Resources Manager with vast experience working with law firms to help, and conducted a market analysis of other firms in the area. After establishing a benchmark, the PEO developed an innovative employee benefits program that rivals top law firms in the area. Our PEO partner then devised a recruitment and retention strategy designed to reposition the firm in the marketplace.

RESULT

The firm now offers benefits and employee development that are on par with their top competitors. They have a clear plan on how to increase employee satisfaction and retain quality people while attracting top new talent. Their turnover has reduced significantly, and employees shared positive feedback during and after their benefit enrollment meetings via employee satisfaction and engagement surveys. Leadership can now focus on clients and on growing the firm.

Click below for a free PEO assessment. Our PEO Quoting Tool ensures that we have first-hand insight as to what the small business owner needs to be successful.

Contact Us Now    Learn how our Agency is helping buinsesses thrive in today’s economy. Please contact us at info@medicalsolutionscorp.com or (855)667-4621. 

PEO: Co-Employment

Small, Midsize Businesses Hold Key to Growth

Small, Midsize Businesses Hold Key to Growth

Small, Midsize Businesses Hold Key to Growth

By Thomas J. Donahue, President and CEO, U.S. Chamber of Commerce Sept 25 ,2017

Small, Midsize Businesses Hold Key to Growth  The U.S. economy grew at a rate of 3% last quarter, the fastest pace in more than two years and a welcome sign of momentum following a sluggish recovery. What do we need to do to ensure this progress continues? For one thing, we need to listen to America’s small and midsize business leaders. These economic playmakers often get drowned out in our modern political discourse, but the U.S. Chamber of Commerce is working to make sure their voices are heard—because our country depends on them.

We’ll never kick our economy into high gear if we don’t understand the concerns and goals of the business leaders who are on the ground working to expand their companies every day. In debates over tax reform, health care, regulations, and more, input from these Americans holds the key to boosting the entire country. After all, two-thirds of new private sector jobs come from our 30 million small and midsize businesses. When we respond appropriately to their frustrations, we end up helping our workers and communities too.

The Chamber conducts surveys of small and midsize businesses every quarter, and we use the results to keep our government in tune with our economy. We also host events such as our recent National Small Business Summit in Washington, D.C., and our Small Business Series of events across the country. Our priority with these is t

o listen and then amplify what we hear.

In the case of our most recent surveys, about 60% of small business leaders in the second-quarter had a positive outlook for their companies and the environment in which they operate. Our third-quarter survey of midmarket business owners, released last week, was slightly less encouraging. These leaders are still optimistic, yet their outlook had dimmed from the previous quarter, partly due to a lack of progress on policy reform in Washington.

These business leaders are eager to hold government accountable. At our recent Small Business Summit, for example, we gave attendees the opportunity to engage directly with members of Congress—and the response was overwhelming. About 200 business owners stormed Capitol Hill to talk tax reform and other issues.

With the third-quarter ending this Saturday, we’ll soon get another official reading on America’s economic performance. The Chamber hopes to see continued momentum with another strong quarter. But regardless of the result, it is clear that small and midsize businesses are ready for real action on vital issues like tax reform and infrastructure. Government leaders would do well to listen up—and get moving.

Contact Us Now    Learn how our Agency is helping buinsesses thrive in today’s economy. Please contact us at info@medicalsolutionscorp.com or (855)667-4621. 


Learn how SMB are accelerating growth using our PEO Partnerships exclusives:

PEO: Co-Employment

Top 10 Questions to Ask Your Benefits Broker

Top 10 Questions to Ask Your Benefits Broker

Top 10 Questions to Ask Your Benefits Broker

Top 10 Questions to Ask Your Benefits Broker  

Benefits Broker Checklist

Are you asking the right questions? Yes, your Broker was referreered by family or friend. You may have met him at golf outing or an event. With rapidly changing laws and markets it maybe a good idea to refer back to this checklist.

To ensure that your broker is the right fit for your company, ask prospective brokers these 10 questions:

  1. What is their method for controlling healthcare costs? The ideal broker will give his or her professional advice to your management and HR teams in order to create a strategy that will work for years. Using data analytics and benchmarking they will be able to show you where your premium falls in comparison to companies similar to yours. Additionally, they will negotiate with carriers to get you the best rate and suggest alternative options for funding your benefits.
  2. What services should I expect? It is important to understand the scope of services that your benefits broker can provide. First, you need to determine what is most important to your company’s needs, then you can discuss what services you will need from your broker in order to have a well-run benefits plan.
  1. Do they have solid references and industry experience? A reliable benefits broker will be able to provide you with references in similar industries and demographics to yours. This guarantees your benefits broker is focused on the specific types of products your employees need.
  1. How will they support your company and your employees? Providing ongoing employee support for benefits-related issues and questions beyond enrollment is important. The best brokers are the ones who are invested in your employees and want them to completely understand their benefit options. You will want to hire a benefits broker who will host informational sessions and schedule employee meetings in order to meet this goal.
  1. What kind of online enrollment and other tools do they offer? Model brokers offer a fully-integrated solution shaped to fit your needs. These brokers will ensure that the technology is equipped to solve your problems. Many brokers offer enterprise class HRMS and Open Enrollment solutions.
  2. How do they plan on handling the renewal process? Typically, the renewal process starts a minimum of 45 to 60 days prior to the renewal date. However, you want a broker who will be proactively working on your plan year-round. This gives both parties involved plenty of time to review the data, gather competitive quotes, and make the right decision. Your broker should negotiate your renewal rate each year and be able to suggest products that would be appealing to your employees.
  1. How do they ensure that their clients are kept in compliance, and what resources do they offer? A good broker takes compliance to the next level. They will supply you with all of the tools and information you need in order to make informed decisions. In addition to communicating compliance information and providing technology to manage compliance issues, their services should include a dedicated contact, representative, or call center that you can use for questions or concerns.
  1. How much support will they offer your HR department? The ideal broker will act as a trusted partner who works strategically with HR, supplying the vital tools for success. Tools such as online enrollment, HRIS software, and human resource outsourcing services. You want your broker to be a total solution provider for your organization.
  1. Will you have a dedicated account manager? As an employer, you want your broker to be accessible in case you ever need them. A dedicated account manager is someone who will always be available to help you if you have a question about your plan or are having trouble making a claim. This contact can help you resolve any issues and answer questions.
  1. How will they determine the best coverage for you? Your employees’ insurance and benefit needs will change over time due to both internal and external causes and changes, so your benefits broker should not only demonstrate the experience to create initial packages, but continue to monitor employee and business needs based on the financial information you provide.

Insurance and benefits offerings are the second largest employee expense outside of payroll. And who is responsible for it all? Your benefits broker. Insurance programs can directly impact employee turnover, retention numbers, workplace productivity, job offer acceptance rates, and candidate quality. With the ability to affect your organization at a very large scale, it is important to have a broker who outperforms the rest. Analyzing these ten critical questions in relation to your organization’s needs will help you make a more informed decision about your benefits broker. If your broker is incapable of answering these questions then odds are you should reconsider.

 

Contact Us Now    Learn how our Agency is helping buinsesses thrive in today’s economy.Please contact our payroll and reimbursement team on your HR/Payroll/Compliance needs at Millennium Medical Solutions Corp at info@medicalsolutionscorp.com or (855)667-4621 for immediate answers.

Empire Strikes Back – 2018 Plans

Empire Strikes Back – 2018 Plans

Empire Strikes Back – 2018 Plans

Empire Blue Cross 2018

Empire Blue Cross Blue Shield recently announced  their re-entry back into the New York small group market for 2017. A legendary broad networked PPO is welcome news especially in the NY small group market of 1-100 employees.  Recently, the broad national networks have  diminished to only 2 national health insurers, Aetna and Oxford.  As a result of Empire Blue Cross participation in the BlueCard PPO program members enjoy unparalleled national access network to 96% of hospitals and 93% of doctors across the country. This national program will be on 18 of 28 plans below.

Network Overview

3 distinct networks:

PPO Network Savings

PPO Network Savings

  1.  PPO/EPO Network – traditional non-gatekeeper large network of approximately 85,384 physicians, 160 facilities and the BlueCard PPO
  2. Blue Priority Network – hybrid of broad PPO/EPO 160 facilities  and similar Pathway’s 65,796 physicians network.
  3. Pathway Network –  HMO value based narrower gatekeeper referral network of 109 facilities and 60,535 physicians. Limited to 28 NYS Counties.

Additional Features:

  •   Telemedicine will be available on all products
  •   Vision –  Limited adult vision will be available on all products at no additional cost.empires-whole-health-connection
  •   Pharmacy – All plans use their large BCBS formulary Except the HMOs, and the Silver and Bronze Blue Priority Plans. They will be utilizing what they call the Select Formulary.
  •  Clinical Programs – health coaching/advocacy, disease management, behavioral health, maternity and Gaps in Care
  •  Online Resources – wellness coaching, discounts, health assessments and The Weight Center.
  •   Healthy Support – Wellness program offers easy ways to earn up to $900 per member, per year.  Gym Reimbursement  $400 single/$600 couple, $100 Wellness + Flu Shot, Online Wellness toolkit, up to $150 and $50 Tobacco-free certification online.

 

DOCTOR SEARCH:  Click Here 

BENEFITS SUMMARY:  Empire Blue Cross 2018 Top Plans 

Small Group Rates: 2018 EMPIRE BLUE CROSS Plan Grid

Drug Formulary: Click Here

Blue Priority  FAQ: Click Here 

Pathway FAQ: Click Here

Ask us about Empire’s flexible low participation voluntary group dental, vision,  disability and life insurance plans. Stay proactive and contact us today for a customized consult on how your organization can prepare  ahead  for ACA, Benefits, Payroll and HR  @ (855) 667-4621 or info@medicalsolutionscorp.com.

empire-voluntary-ancillary-dental-whole-life


 

 Contact Us Now    Learn how our Agency is helping buinsesses thrive in today’s economy. Please contact us at info@medicalsolutionscorp.com or (855)667-4621. 
NYS DFS Announces CareConnect Exit

NYS DFS Announces CareConnect Exit

NYS DFS Announces CareConnect Exit

Join us for Oct 25th Webinar.

We have been informed that the NY DFS has recently approved the following measures in the process of CareConnect exiting the market:
  • For individuals the market exit date is 12/31/2017.
  • For Small Group the market exit date is 11/30/2017.

All groups renewing starting 12/1/17 will no longer be accepted.  Currently active group business will end on the last day of their policy year (For example, a 9/1/17 effective will remain in force until 8/31/18).

With recent announcement “CareConnect Withdraws from NYS Market” a Healthfirst addition to the NY Small Business market is especially important.  In many instances the Healthfirst plans have a more robust network than CareConnect for NYC and LI.  Namely, they have the same hospitals North Shore LIJ(Northwell), Maimonides, but additionally key hospitals such as Mt. Sinai, NYU, Lenox Hill + urgent cares such as CityMD and GO-Health.  Rates are approximately $100/month higher for singles for example than CareConnect and would not be an automatic decision to move to Healthfirst.

DOCTOR SEARCH: Click Here

HEALTHFIRST HOSPITAL NETWORK 2017

HEALTHFIRST BENEFITS SUMMARY

DEC 2017 HEALTHFIRST PRO EPO PLANS

JAN 2018 HEALTHFIRST PRO EPO PLANS

 RSVP a FREE web-meeting below.



Learn how a Healthfirst EPO on your very own Private Exchange can help your group.Please contact us at info@medicalsolutionscorp.com or (855)667-4621. 

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NEW 2018 Healthfirst for NY Small Business

Healthfirst has released affordable new 2018 plans for NY small businesses and not a moment too soon.  With the recent exit of popular CareConnect of NY the market is starving for an affordable option.

About HealthFirst

Healthfirst had entered the small business market Jan 1, 2017. Healthfirst is a provider-sponsored health insurance company that serves more than 1.2 million members in downstate New York and Nassau county. Healthfirst offers top-quality Medicaid, Medicare Advantage, Child Health Plus, and Managed Long Term Care plans. Healthfirst Leaf Qualified Health Plans and the Healthfirst Essential Plan are offered on NY State of Health, The Official Health Plan Marketplace. Healthfirst offers Healthfirst Pro and Pro Plus, Exclusive Provider Organization (EPO) plans for small-business owners and their employees, and Healthfirst Total, an EPO for individuals.

The Healthfirst options include four Pro EPO plans with comprehensive benefits and pediatric dental and vision coverage that span all the metal tiers (Bronze, Silver, Gold, and Platinum). With Healthfirst plans, employees will have access to key features, including preventive and wellness visits (including annual checkups, vaccinations, and mammograms); a multilin

gual member services team; access to telemedicine via Teladoc; a robust choice of in-network doctors, specialists, hospitals, and urgent care centers; behavioral health and substance abuse services; coverage for acupuncture visits; and a user-friendly member portal that enables members to proactively manage their care.

Value

Healthifrst’s new January 2018 rates are in fact virtually the same as 4thQ 2017. Example, a single rate is approximately $2-$3 higher. Today’s largest networks with popular in-network only GOLD  are priced at  $857/single monthly. By comparison the Healthfirst Gold plan is $717 annualy or 15% less expensive.  For platinum the price gap jumps are even higher – $1050/single vs $850/single.

  •  Members have access to a broad network of providers and dozens of industry-leading hospitals.
  • Community locations throughout New York City, Long Island and parts of Westchester.
  •  Dental and vision coverage, 24/7 telemedicine access, acupuncture, exercise reward programs.

All Metal Levels will be included for all size groups including 1-99 market.  Referral’s are not needed to vsisit a Specialist MD but one must select a Primary Care Physician on the enrollment form.