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Our PEO Services

PEO Services

Compass offers PEOs both client-level risk management and benefits consulting including design, strategy, and benchmarking.  Your consultation covers medical, dental, life, disability and voluntary products.  Detailed below are the services are designed specifically to help you manage and grow your PEO:

 

Benefits Consulting Services

Group medical insurance is the fastest growing medical expense for most employers, and one of a PEO’s key value propositions.  Compass Consulting applies our experience and risk modeling to help your PEO design sustainable healthcare solutions. Our consulting services include:

  • Review annual insurance carrier renewals (medical and ancillary) including independent actuarial verification, as appropriate
  • Negotiate carrier renewals and new business rates to achieve key objectives
  • Identify avenues to generate improved rates and geographic coverage, including new plan designs, rate bands, products, risk management and competitive bidding
  • Dental, life, and disability product management
  • Create requests for proposal and evaluate proposals received
  • Identify opportunities to increase market competitiveness, including benchmarking all plan designs versus industry best practices
  • Evaluate risk-management practices and recommend enhancements
  • Evaluate client firms’ risk to ensure appropriate placement in rate-banding structure of medical plan (in partnership with independent actuaries)
  • Evaluate options to enhance benefits administration (both processes and technology)
  • Recommend options to generate benefits-related revenue for PEO and agency
  • Provide insight and guidance on healthcare reform including PPACA
  • Review merger-and-acquisition targets, develop migration plans and assist with implementation

Risk Management

Successful plan management requires maintaining a balanced mix of risk levels. We provide PEOs the underwriting and risk management tools needed to properly evaluate each employer’s risk level both prior to joining the plan and throughout the plan year.

Our process begins with a complete review of your current underwriting processes and a new business risk review.  Your PEO benefits management and sales team work hand-in-hand with our underwriting staff to develop customized risk-banding structures to maximize competitiveness, retention, and stability.  Next, we develop a customized, phased-in approach to improve risk management, including with on-site training.  Finally, we conduct ongoing performance analysis and reporting, and annual risk reassessments of all clients to ensure your plan goals are met.  Risk management services include:

  • Plan Review
    • Complete review of current underwriting processes and new business review
    • Risk-management strategy development (information and process)
  • Rating
    • Dedicated underwriters develop rating baseline for new-business rates (determine the demographics, geography, COBRA status, and morbidity that represents the 1.0 risk for the PEO)
    • Determine appropriate risk bands for new business in light of unique competitive pressures or missing information
    • Evaluate claims data for larger prospects where experience rating is involved
    • Provide enhanced actuarial forecasting including predictive modeling
  • Performance Evaluation
    • Compare actual performance to predicted performance and evaluate potential gaps in the risk-management process
    • Perform ongoing, day-to-day risk assessment of new business
    • Provide up-to-date assessments of demographics, geography, COBRA, and medical conditions from independent third-party actuarial firms
    • Provide third-party assurance of consistency in risk-management practices (same as above?)
  • Administrative
    • Serve as an educated liaison between sales staff, brokers, and actuaries
    • Provide service-level agreements on turnaround time
    • Provide training to sales staff and select brokers on the risk-evaluation process in order to ensure appropriate submissions
    • Supply external compliance verification where required

Medicare Management
(Small Employer Exception or “SEE” Program)

It’s an actuarial fact: costs for Medicare-eligible health plan members are three times the average plan participant. Yet in a PEO or MEWA plan, Medicare is only a secondary payer – your plan pays first – and bears most of the expense. Prior to joining a PEO, many clients participate in smaller, stand-alone health plans. Often these smaller plans receive favorable ‘Medicare Primary’ claims treatment, an advantage your PEO plan does not have in this potentially costly area.

Let Compass Consulting illustrate our unique Medicare Small Employer program that can ease this expensive burden for your plan and your non-Medicare participants.  We manage the entire process, and can do so with a guaranteed ROI multiple on the program costs. Our consultants can show you how.