What Is A Health Maintenance Organization (HMO)?

Wikipedia defines a Health Maintenance Organization (HMO) as a type of managed care organization (MCO) that provides a form of health insurance coverage in the United States that is fulfilled through hospitals, doctors, and other providers with which the HMO has a contract. Unlike traditional indemnity insurance, care provided in an HMO generally follows a set of care guidelines provided through the HMO's network of providers. Under this model, providers contract with an HMO to receive more patients and in return usually agree to provide services at a discount. This arrangement allows the HMO to charge a lower monthly premium, which is an advantage over indemnity insurance, provided that its members are willing to abide by the additional restrictions.

Many employers and employee leasing companies offer an HMO as a health insurance option for employees. Websites such as http://www.Peo-Quote.com help employers navigate the maze of health benefits offered by various employee leasing companies.

PEO Services

What kind of services does a typical Professional Employer Organization (PEO) offer?:

PEO Payroll Administration

* Prepare payroll and distribute checks
* Direct deposit
* W2’s
* W3’s
* Payroll Data
* Withholdings and Tax Deposits
* Payroll record keeping, audits
* I-9 inquiries
* Reports and job costing
* Time clock management
* Vacation
* Payroll software

PEO Workers Compensation

* Claims administration
* OSHA Compliance
* Policy cost
* Dividend plan reviews and audits
* Report and document accidents
* Safety plan creation, administration and training
* Work Comp billing reconciliation
* Safety audits
* NCCI rate reviews

PEO Employee Benefits

* Short term disability
* Long term disability
* Benefits handbook
* Dental insurance
* Health insurance
* Eligibility tracking
* COBRA compliance and administration
* Plan discrimination testing
* Carrier payments and account audits
* Annual plan cost reviews
* 401K administration
* Annual enrollments
* Flexible spending accounts administration
* Section 125 (pretax) premium audits
* Life Insurance plan administration
* Employee assistance plans (EAP) administration

PEO Human Resources

* Legal assistance establishment and retainers
* Employment policies
* Valid employee handbooks
* Manage insurance for Employment Practices Liability (EPLI)
* Unemployment claims administration
* Background checks
* Audit compliance with Wage and Hour (FLSA)
* Audit compliance with ADA – Disability Act
* Audit compliance with EEOC
* Audit compliance with OSHA
* Attendance audits
* Employment applications
* Applicant interviewer training practices
* I9 compliance

The exact set of services bundled for a PEO client are customized to the needs of the employer and his employees. The employer saves money, time and aggravation by partnering with a PEO.