In 2018, the average annual premium of employer-based family coverage rose 5% and is expected to do the same next year. Many businesses struggle to provide their employees the health benefits necessary to stay competitive in a tight labor market, but there is a solution. A health insurance master plan can keep costs down without sacrificing care options or increasing employee deductibles.
A client-sponsored plan is one where the employer has selected a health insurance provider and employees can choose various levels of coverage from that provider. In contrast, a health insurance master plan allows Professional Employer Organizations (PEOs) to combine all of the employees it serves under one large umbrella. The employees continue to be individually underwritten or covered by their own company’s plan, but they are pooled with other PEO-represented companies for underwriting purposes.
Simply stated, a master plan saves employers and employees money because they are now part of a larger pool of people. The insurance plan is less expensive to administer, resulting in lower premiums. At Applied Business Solutions we utilize a Florida Blue Cross/Blue Shield health insurance plan, which allows us to enroll people in our PEO immediately, and they experience lower costs on health benefits from day one. Our clients’ savings can be significant, often partially or fully offsetting the cost of their human resources, payroll and tax compliant PEO services.
The key to a master plan is pooling employers to give the same underwriting leverage as larger companies. This benefits our clients by:
A health insurance master plan can change your entire benefits landscape, save you money, and be a critical piece in retaining and attracting the right employees. Contact us today to learn more about our PEO services and how much money you could save with a master plan.
“Without the use of their PEO service expertise, and website resources, I don’t know what I would have done.”Charley D. – St. Augustine, FL
“Applied Business Services saved me and my company so much money on all of our PEO service needs. Highly recommended to anyone in the market!”F. Reynolds – Jacksonville, FL