Dear Fellow Business Person:

Health Care

Premiums are still increasing at double digit levels. General Motors will be spending over $5.5 Billion in 2005 on health care. This is an unprecedented amount of money. As a result, GM is excited about the possibility that the union will accept a plan concession that will increase their deductible from zero to $150.00. Yet another gasping short term fix.

Consumer-driven health plans. These are few and far between today, but they won't be for long. Though they come in a wide variety of types, they share a common principle: Give employees the tools and financial incentives to shop for smarter, more economical care that benefits both employers and workers. Most consumer-driven plans combine high-deductible health insurance coverage (usually based on a preferred provider network) with an employee-controlled spending account such as a Health Savings Account. Legislation passed in 2003 provides tax incentives that make HSAs more attractive.

About 14% of large employers will offer consumer-driven plans in 2005, rising to 26% in 2006, according to a recent survey by Mercer Human Resource Consulting. Most will make use of HSAs.

It's the latest trend in health care, at least among Fortune 500 companies: Let employees design their own health insurance plan based on their needs and pocketbooks—putting everything on the table, from the size of the deductible and out-of-pocket limits, to the amount of access they have to physicians and prescription drugs.

Small Business: Bush's Small Business Health Plan Didn't Go!

President Bush's plan was to let small businesses band together to negotiate a better rate for health insurance. This did not occur and does not look as if Congress will allow the association plans to occur.

Strength In Numbers

Look for small business to begin wanting the same programs offering choice and tax benefits to both the company and its employees. They also want the ability to combine with other small business to gain economy of scale. The IRS has recognized this need and does allow us to band together to reduce costs and improve benefit offerings. You need to find out how this is accomplished.

Competition

Small business needs to be provided with the same benefits as the large employers. Small business is competing for the same work force. Economic recovery has been on the backs of small business. Benefits are the single most important item for an employee when considering employment options.

Benefits are also the largest single labor cost to small business.

The administration of such plans is overwhelming for small to medium sized companies. The solution is to provide your company with the tools that reduce costs today and into the future. Small business needs to focus on their business, not the business of employee benefits.

The American Group

Look for small business to see the benefits of human resource and benefits management outsourcing. By aggregating small businesses together, small business employees are provided with Fortune 500 benefits, and small business saves money. This is the result that President Bush desired through his business association plan. Now, small business will have available multiple health plans for their employees. Small business benefits by utilizing Health Savings Accounts (HSA) for owners and key executives. This substantially reduces their cost by utilizing Health Reimbursement Accounts (HRA). Plus, the employees are provided with Flex Savings Accounts (FSA), thereby reducing the cost of medical, eye and dental care. Employers reduce the taxes they pay for the employees' Social Security, Medicare, and Workers' Compensation. Now, small business Competes with the major corporations' benefits effortlessly in a paperless environment. Every benefit that our Uncle Sam has provided over the past 24 months is utilized with maximum cost savings and efficiency.

Your Move

The American Group is a human resource and benefits management company. Currently, we manage over 11,000 employees. The aggregated medical costs have been less then double digit since 1996. All the programs are fully insured. We would like to share with you how your organization can capitalize on all that Uncle Sam has made available to you. Call 330.668.1845; e-mail inquiries to info@theamericangroup.net, or click here for a free, no obligation quote.