ADP Benefits Question

[mkd1204]

Hi Beachgal, Are you in California? I didn't think about a PEO broker. Please clarify, where would I find a PEO broker to partner with? Didn't know this was an option, other then payroll companies and I don't think they want to partner with brokers. I have looked high and low and it looks like my only option to offer an HMO in another state is to set up a separate entity based in that state. The group would rather not do this. Thank you for your response.

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Thank you MKD,
Yes, I have explained this to the group, but they use ADP and the ADP rep is enticing them with the PEO option. Especially if they have to go back to small group next year and age rated premiums. They just moved to composite rates and don't want to go back to the old rating system. Thank you for your response.

Did you get them by BOR or write them new?? Some of the carriers in NJ are allowing an early renewal 10/1 and then guaranteeing "grandfathering" so they can keep composite rates until potentially 10/1/2017.

Not sure if they are in Cali but Extensis works with brokers and are PEO.

Call the insurance carrier reps and get their input. They will want the business and can hopefully guide you. This group is certainly not unique in employee geography so there are options.

 

[Coastalins]

Yes I am the current broker. I did speak to our carrier rep and he had no solution either. I believe that the group will have to join ADP's PEO to keep composite rates in 2016 and also have an out of state HMO available.
Is there any other PEO available that works with brokers and can offer composite rates to groups under 100 in California?

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Oops just noticed the Extensis option. I will look into that. Thank you!

 

[Jwalker56]

Extensis and Insperity are both broker friendly. Extensis uses UHC and Insperity uses Aetna. Extensis charges a flat dollar amount and you have to take payroll & workers comp. Insperity only requirements are payroll & worker comp. Not sure about California availability. They both work in the 10-150 market.

 

[CGoings]

Here is also something for the group to consider; PEO's are limited in the carriers they offer since some carriers will not partner with a PEO. I worked for a PEO and we had a heck of a time getting carriers to come on board. National carriers like Aetna & Humana (which has a PEO division) are equipped to work with a PEO. The Blues were the most difficult and resistant to join as well.