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Obamacare SCOTUS Ruling: Now What PEOs?

Barack_Obama_signs_at_his_deskThe PPACA ruling by the Supreme Court of the United States may prove to be one of the most highly anticipated but least significant rulings of our time.  It was kind of like waiting for a large firework to explode in the sky but instead it was a dud.  Fortunately the worst case scenario that I laid out in my blog yesterday was averted and that was to have the all of the law left in tact except the individual mandate.  If the individual mandate was tossed out, it would have been a political poke in the eye to Obama by the Republicans in Congress but the American people would have suffered.  Since members of Congress have their own medical plan they do not have to participate in the same free markets which you and I have to participate in so they can afford to play political chicken more than the average American can.

As someone who works in the PEO industry and who spends countless hours searching for the most strategic healthcare solutions for my clients, life simply goes on.  Today was simply a non-event considering the law was already in place.  PEOs whose business models revolve around their large group health plans may be in trouble once the exchanges are established but those of us that provide strategic human resources and benefits advice which include a large group health plan but do not revolve around it will be in a great position as strategic consultants.

Large group, small group, or no group at all, we must advise our employer clients on what’s best for them not only from a premium standpoint but from an employee attraction and retention standpoint as well.  I will continue to be a believer in health reimbursement arrangements (HRAs) which may work even better when coupled with the insurance exchanges than they do with group plans.  As long as you maintain your integrity and passion for the PEO solution, the grass will only get greener.

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