Imagine that a carrier agrees to underwrite your clerical staffing company and when the policy arrives, you inform the carrier that you really staff light industrial employees. Or imagine that the carrier quotes you workers’ compensation rates based on your stated payroll of $1M per year, but when you receive the policy, you inform the carrier that you actually have a payroll of only $100K.
With the Obamacare roll-out debacle, insurance companies have to wonder whether they will receive 5000 or 50M new customers–and when will they get them? More importantly, what will be these customers’ health profile be?
All insurance is based on quantitative metrics that are painstakingly researched by expert teams of actuarials. Insurance is grounded in confidence in data—confidence that the information received for quoting your staffing business is essentially the same as when the policy was developed and approved by the underwriters and State regulators.
Obamacare now harbors many cross currents of information for insurance companies to grasp. One can easily imagine that rates are going to be higher, or that the carriers may decide to wait a few years before bidding on the business. In the worst case, the government may decide to be the insurer of last resort (like the State Funds are with comp) for the next few years. Whatever happens, I suspect that, before long, Obamacare may be significantly modified.
To read more details about this situation, see:
http://www.mcclatchydc.com/2013/11/07/207909/analysis-tens-of-millions-could.html
and
To help you stay ahead of these changes or to discuss work comp options for your staffing company, please feel free to contact me at davidstaffing@gmail.com or visit us at www.StaffingCompSolutions.com.
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
StaffingCompSolutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 20 Years.