Small Business Health Benefits Challenges ... And Solutions

When you pay, health insurance is the main attraction of small businesses use to recruit and keep employees motivated

. Yet, many employers have discovered the ability to provide affordable health insurance more challenging as premiums continue to rise and the options continue to diminish. Employers are starting to think 'outside the box "and looking for new ways to offer their employees

benefit programs, and keep them motivated.

The study shows that more than half of companies surveyed 365 small rents increased by as much as 10 percent this year, and nearly 10 NAPE said that dump their health coverage next year or in doubt. Many of these companies reported at least some of the travel expenses of employees next year. One in five said he would raise deductibles and outpatient deductibles, one in four said that they raise premiums.

The survey was conducted at the national level, employers in some states like California, are the most affected. Michael Holmes, Director of Client Services CPEhr, a PEO based in Los Angeles, is not surprised. "This is an awakening," said Holmes. "Increasing health insurance costs in California hit small businesses particularly hard, and these

businesses employ the vast majority of workers. This is a very worrying development, not just for small businesses and their employees, but for all the economy. "

A recent report by the California State Library, entitled "Ninety years of efforts to reform health insurance in California" by Michael graduated, Ph.D of the California Office of Research, reviews history of health insurance in California dating back to 1918. It reveals some surprising facts and causes even greater concern in California:

Between 1961 and 2002 the cost of health care increased almost without interruption. Effort to keep proven in the long term.

Federal programs provide health care for more than 7.4 million Californians. If the programs are not used to the number of uninsured would have been double.

More than 20 percent of Californians, 6.6 million people who currently lack health care during the year according to research conducted for the California Healthcare Foundation.

have no health insurance, about 75 percent of workers and their families.

As a result of premium growth, the number of people covered by health insurance in California, from 64.6 percent to 54.7 percent between 1987 and 2005.

Some employers are happy to continue along the traditional route for the medical expenses of their employees. Although the increase in insurance premiums, more correct to consider is the cost of doing business . However, many employers are now turning to California PEOS to provide relief to insurance woes of their employees'.

What is a professional employer organization?

The employer organizations, or PEO, pool thousands of employees under one roof and provide spending plans for the effective management of health insurance for small business. "In addition, the PEO to help small businesses outsource their work time human resources policies such as payroll, human resources and risk, so that owners can focus on profits. The PEO acts as a human resources department off-site, so that even small businesses can access the experience usually reserved for large established organizations. Including California, where the rules of employment policies and safe resort difficult weigh heavily on

small businesses, is very beneficial for small businesses in California to connect OPE experts in the state, such CPEhr that.

Through this co-employment relationship, small organizations access to economies of scale of large companies. CPEhr packages customers can offer premium benefit and pension plans to their employees, usually carried out by its larger competitors. They can maintain a simple house HR infrastructure or none at all on the basis of the PEO. The client also can reduce hiring in general. Costs of monitoring and enforcement of labor laws is reduced, as is often significant costs of noncompliance with these laws. The office also provides time savings by handling routine and redundant tasks for its customers. This allows the business owner to focus on core competencies and increase profitability.

According to NAPE, PEO industry has grown by over 15% in 2007, 61 billion dollars of gross income. PEOS currently provide access to employee benefits 2-3000000 American workers. This number continues to grow as economies of scale offered by PEOS make them an attractive solution for small employers who want to offer a wide range of benefits to its employees, without a purchase, management or control over these plans.

It 'clear that not all needs of

small businesses, or even want to offer this wide range of benefits to its employees, it would be comforting for them to know that there are alternatives. At least, the small employer should recognize the unique opportunity to help provide a level playing field PEOS complex and difficult environment for employee benefits.

Conclusion

The increase in health insurance premiums, employment and benefits administration complex and the weak economy are making the task of obtaining affordable health insurance more formidable for the

small business to handle typical. Especially in California, where 75% of the population is uninsured in the workforce, these challenges are reaching critical levels. More and more employers are turning to alternative health insurance, such as membership of an exchange offer the benefits of your coverage. This company, CPEhr is a leader in the California market and can provide these solutions efficiently and cost-effective for companies based in the state.

by: Yasir

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