Talk show host, Mark Imperial, posed the question on every employer’s mind, “What should businesses with 200 or less employees be doing strategically now that it’s gotten way more expensive and way more complex with the Affordable Care Act (ACA), aka Obamacare.”
Senior Partner and Aliere Executive Vice President, Medley explained that Aliere works with business owners, upper management, and private equity groups to take a hard look at what they are doing for HR and employee administration, specifically around reducing costs, risks and exposure.
The company doesn’t serve as broker, but consultant and advisor looking after the company’s best interest. “Human resources, including employee benefits, is probably one of the most under leveraged, under optimized areas of a business,” says Medley. “We go in and do a needs analysis, look at their vendors and their costs and help them develop a comprehensive strategy to managing all of those functions.”
A study from the Kaiser Family Foundation shows that employee deductibles jumped 11.1% for family plans offered through small businesses. The pending ACA regulations include, new reporting requirements, classification changes for full-time employees, and particularly worrisome for smaller and medium businesses is the limiting of plans employers are allowed to offer.
“The Affordable Care Act has really made health insurance and employee benefits administration a lot more difficult,” says Medley. “There is a lot of confusion in the marketplace and the old broker-style model is just not effective anymore. This allows for the opportunity for a new type of broker model to exist. One that helps the person that needs help the most—that’s the business owner.” Medley says that in most small and medium companies, administration of HR responsibilities fall to a single individual and there is “no way that person can keep up with the dynamics of this industry.”
To that end, Medley partnered with longtime industry expert Art Goetze to create just such a model. Aliere’s exclusive approach expands the market for business owners by providing competing bids from credentialed vendors to ensure the best price and the best service for each company, usually saving them 25-55% on average, he said. The best part for the business owner is that Aliere’s service doesn’t cost the business anything.
One of the biggest problems or misconceptions he says he encounters when consulting with employers is that most assume that health benefits are going to be more expensive next year or that fully-insured health plans are the best or only option. “That is simply not true,” says Medley. “There are actually four different ways for a company to access great employee benefits. The most exciting for us is the self-funded group health plan.” This strategy allows the employer to only pay for the services that the employee actually uses, he explains, which also reduces the premiums. With this plan, employees only need to have minimum of 10 employees to sign up.
Medley and Aliere Advisors understand the market, know the vendors, and the laws. There are solutions out there PressCable Page 3/8 in the marketplace, he says, but most employers of smaller businesses just don’t know about them. “We’re really trying to get them the best value for their dollar,” he says.
To hear a recording of the interview, visit www.aliereadvisors.com/demosite/chicago-radio-show-am560
About Aliere Advisors: Aliere Advisors helps companies save 25-55% on average for group health insurance and eliminates virtually all employment risk by outsourcing HR to a PEO the best vendor. They serve as a trusted advisor in making better choices. Advocating and negotiating on behalf of clients during the bidding, negotiation and onboarding phase so they’re not alone. They put their experience and knowledge to work for clients every step of the way so they get the best rates from the best vendors.