Shift from PEO Results in Reduced Costs and Better Aligned Services
SITUATION
A company with 35 employees had a substantial medical insurance rate increase from their Professional Employer Organization (PEO). The employer asked Provider Group to review the situation. Cost was the reason this company initially selected the PEO, so they now questioned whether it was time to make a change. Although the PEO offered a wide range of services, many were services which the company didn’t need.
SOLUTION
Provider Group performed an in-depth analysis of not only the company’s cost of insurance, but also the administrative side of things. We compared which services they were actually using and which were needed, against what the PEO offered. The employer didn’t value many of the PEO’s services since they weren’t applicable to their company. Based on this, we designed a plan to meet their needs and reduce the administrative and insurance costs.
Our employee benefits team also evaluated the depth of service the company was receiving from the PEO. The employer concluded that the PEO’s sophistication, understanding of the healthcare industry, and options available were limited. They recognized that the knowledge base they would have access to when working which Provider Group was far above what the PEO was providing. We also discussed what kind of day-to-day relationship the employer wanted with their Benefits advisor, and they valued our hands-on approach.
RESULT
Provider Group presented a plan that decreased the company’s administrative costs by 86% (a reduction of over $50,000)—and increased services that would actually be utilized. In addition, the insurance costs also decreased. The company now has access to services that are appropriate for them and a close personal relationship with an advisor who has a higher level of expertise. The company now has greater functionality and more services that they’ll actually use! In addition, they appreciate all the advantages of having a close and consultative relationship with their advisor who is in contact with them throughout the year, not just at renewal time.
For more information about our services contact Jamie Moran, HIA, MHP, Director of our Employee Benefits group. He works with clients to design and implement innovative employee benefits strategies. Jamie can be reached at 401-671-6359 or jmoran@providerig.com.