If you’ve ever tried to soak up spilled Kool-Aid, you know that even the most expensive paper towels have a limited ability to absorb.  It happens with sponges, mudslides, and your kitchen mop.  Once something has reached its saturation point, there’s just no way to soak up any more.

Experts are telling us that rising medical care costs have brought the health insurance industry to its saturation point.  In an effort to keep your insurance premiums low, insurance carriers have lobbied the government to mandate more safety programs. 

They’ve cut costs by creating HMOs and PPOs to police the system so that no one pays for medical services they don’t need.  They’ve even suggested you pass part of the expense on to your employees by asking them to pay a larger portion of the premiums and tolerate increased co-pays.  Unfortunately, health insurance carriers are telling us that there’s just not much more “mopping up” they can do.  They can only absorb so much. 

Pity the health insurance industry, but what about you? According to the GAO, increases in employers’ costs to provide health insurance outpace inflation every year.  Your sponge is getting pretty soaked too!

What do you do when you can’t sop up any more?  You find somebody with a bigger sponge!

The bulk buying power of a PEO allows the PEO to provide insurance benefits at a reduced cost.  A PEO is not just a quick fix.   If you’re feeling like you’ve just about reached your saturation point, maybe there’s a way a PEO can help.