In the age of the Great Resignation, benefits have skyrocketed to one of the top priorities of job seekers and employees. According to Forbes magazine, a study was recently published stating that “Sixty-two percent of employees surveyed identified employee well-being as a key deciding factor when applying for a new job.” One of the biggest advantages to partnering with a PEO is that small and medium-sized companies can now offer Fortune-500 level benefits to your employees, even if you’re just getting started as a company.
Let’s talk about what information the PEOs are going to need in order to underwrite your employee health benefits.
Underwriting is the research process that a PEO does before entering into a new relationship. You can learn more about the basic underwriting process here.
The underwriting submission process can be daunting. Every PEO has their own submission requirements. The sheer volume of documentation to be collected and the level of details required about the inner workings of your business can be enough to make you wonder if it’s worth it (We promise it is – but don’t take our word for it – check out these case studies for some added motivation). At ARC, our team has refined the submission process down to only the necessities and our incredibly talented account management team run point on client submissions in order to guide each of our clients through every detail of the data collection and submission process.
Let’s dig in.
The foundational document to your submission process is the Employee Census. The census includes demographics, employment and workers comp information, and elections for health benefits. Most PEOs also require demographic information for dependents who will be covered on the plan. Together with the Benefit Invoices from your current health carrier (if applicable), the census information provides the crucial full-picture demographic information of your group that the PEO needs in order to accurately evaluate if your company qualifies to join their Master Health plan.
Another essential document is the ARC GHQ – The Arc General Health Questionnaire. This is a HIPAA-compliant form, developed by ARC, asking for general health information about your group, which will give the PEO insight into the potential risks within your group such as anything that might cause higher medical exposure. The ARC team is always available to provide guidance in completing this, or any other form that is necessary for the underwriting process.
Does Your Company Already Offer Benefits? Read On!
For a company that already offers health benefits, many PEOs require that you submit your most recent Benefits Renewal and Current Plan Designs. Your Benefits Renewal will give them an idea of how your group has performed in the past when it came to renewal time. An average rate increase can indicate a healthy group while an above average increase tells the PEO that there may be a health issue in your group, posing a risk for them in the future should they choose to take on your group. Your Current Plan Designs are your current health plans and benefits packages that you offer. This indicates a great starting point for developing a similar plan for you to compare against and for them to ensure they are meeting your company’s needs.
There is always a chance that some PEOs may decline to quote your group. This can be because they have specific rules for the type of demographic they take on, or because their rating technology perceived some risk in the group. This is ok. Not every PEO is a fit for every company. Your ARC account manager will be there to guide you every step of the way and help you navigate the necessary steps to make your best match.
If you’ve gotten a little lost, no worries. The only thing you need to do is send us back the information on that PEO Proposal Checklist you received from your ARC Account Manager, and we’ll do all the heavy lifting for you. No need to remember which PEO requires which documents for their submission, or why they need it either. If you have questions while collecting your data, ARC is always just a phone call away!
STAY TUNED: Next week, we’ll break down the documents necessary for the Workers Comp portion of your submission.
Hit the comments or schedule a call to learn more!
Not sure if a PEO is right for your company? Take the “Is A PEO Right For You?” quiz to find out!