Navigating the tangled web of your Professional Employer Organization (PEO) renewal packet can be a daunting task, especially when it comes to the new rates for health insurance, workers' compensation, and other benefits. This article will help HR pros unravel the intricate threads of their PEO renewal packets and offer some insider tips from the health insurance industry. Remember, you're the champion of your HR team, and you've got this!
Health Insurance
Let's start with health insurance – a key cornerstone of any employee benefits package. PEOs provide a cost-effective way for businesses to offer their employees access to health benefits, and understanding the rate changes in your renewal packet is crucial.
Premiums
The first thing to look for in your renewal packet is the new premium rates. Health insurance premiums are usually calculated per employee, per month. This rate will include both the employer and employee portions. The rates are determined by several factors, including employee demographics, overall health status of your employee pool, geographical location, and plan selection.
Claims
Claims are a significant factor that determines the health insurance rates. When claims are high, insurance carriers are likely to raise the rates. Your PEO renewal packet will often include a claims experience report. Take a close look at this report, as it can help you understand your employees' health needs and plan your wellness programs accordingly.
Wellness Programs
Many PEOs now offer wellness program discounts. If your employees are engaged in these programs, you might see a reduction in your overall premium costs. On the other hand, if participation has been low, consider investing in initiatives to boost engagement.
Workers' Compensation
Next, let's explore workers' compensation. The rates for workers' compensation insurance are generally determined by the nature of the work your employees do and the company's claims history.
Class Codes
Each job role in your organization is assigned a specific class code. The riskier the job (in terms of potential for injury), the higher the class code rate. This information should be included in your renewal packet.
Experience Modification Rate (EMR)
Your company's claim history is represented by the Experience Modification Rate (EMR). If your company has a low number of claims, your EMR will be lower, leading to lower premiums.
Safety Programs
Much like wellness programs for health insurance, safety programs can significantly influence workers' comp premiums. If your PEO offers any safety program discounts or has safety training requirements, these will be detailed in your renewal packet.
Other Employee Benefits
Other employee benefits such as dental, vision, life insurance, and disability insurance rates will also be included in the packet. These rates are generally more straightforward and depend on the number of employees opting for these benefits and the level of coverage chosen.
Remember, the costs associated with providing these benefits are an investment in your team's wellbeing and can lead to improved productivity, morale, and retention.
Conclusion
As an HR professional, you're a vital player in understanding and managing the complexities of your PEO renewal packet. Keeping an eye on your company's claims history, boosting participation in wellness and safety programs, and staying abreast of changing job roles and associated class codes can all help you stay ahead of the game. You're the champion of your HR team, and by arming yourself with the right information and resources, you'll no doubt succeed in navigating the labyrinth of your PEO renewal packet.
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