October 30, 2013
Currently, the topic of American healthcare challenges is pervasive across U.S. newspapers, television networks and online. Even most international media is covering the debacle of the Affordable Care Act from the website launch failure to the fact that millions of policies are now being cancelled all over the United States after promises from our President that if “you like your plan, you can keep your plan.”
Over the last few years, Tiger-Consulting has offered a simple solution to help American businesses, which have since received a year reprieve from the ACA mandate, but are still faced with the difficult task of making hiring and spending decisions through 2014 as well as working to identify affordable employee healthcare options that will adhere to the new law when that delay is over. After all, a one-year extension for businesses will certainly go even more quickly as the last three and a half years have gone by since the passing of the ACA.
While this blog is not long enough to address both individual and business issues in regard to the U.S. healthcare system, as a Professional Employer Organization (PEO) providing comprehensive payroll, benefits and business as well as employment outsourcing to 175+ enterprises (mostly based in the U.S.), we’d like to offer up a suggestion to both: Third party insurance.
Tiger-Consulting’s staff members hired to support Asia satellite operations for our global enterprise customers enjoy a hybrid contractor/employee model, which provides access to traditional employee benefits while clients can retain top freelance talent by offering them added protection and incentive without making contributions. It’s the best of both worlds-a policy that protects the security of your freelancers but one that your business doesn’t not pay into and one that they can take with them like a 401K.
Here’s how it works: Contractors pay into group policies under our firm’s umbrella, which significantly reduces the cost the freelancers would otherwise pay for individual employment insurance or healthcare policies. When a contractor is between jobs, they can remain technically employed by Tiger- Consulting, and thereby, maintain their contributions to unemployment and medical insurance. If a contractor is laid-off or terminated, they can even collect unemployment pay.
As a third-party employer , Tiger-Consulting’s hybrid model solves the security challenge for our own staff as well as the team members we hire throughout Asia on behalf of our business clients. Contractors enjoy flexibility, higher hourly rate AND predictable benefits. In turn, our enterprise customers can confidently continue to hire and expand to new territories, even in uncertain times.
While the third-party insurance option cannot be applied to all businesses as an alternative to the ACA (also known as Obamacare), we encourage our clients to inquire about this option to determine its viability for their domestic as well as international operations. If it helps to save jobs and keep hours at full- time for existing employees, it’s certainly worth an email or phone call to us, and we are happy to walk you through the process.
Founder & CEO, Tiger-Consulting