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.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

© 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.