Jay Starkman, CEO of Engage PEO in St. Petersburg, Fla., remembers a 50-person, light-manufacturing company in the southeast United States.
Ten years ago, health insurance rates were very low, and employee participation was very high. The employer paid 100 percent of health insurance, dental and vision coverage. "At the time, that was expected," Starkman says. "That was what the company needed to do to be competitive." All the firm's employees participated.
As the years went along, employees aged and medical costs went up. The company began to water down its benefits plans, but costs still went up by at least 10 to 15 percent every year. In one dramatic year, the increase was between 40 and 50 percent.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
