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Lowering HealthCare Costs for The Staffing Industry

Written by SISCO

Providing benefits is expensive. Often companies in the staffing industry don't have the buying power to achieve lower rates that can make them more competitive. The Staffing Exchange is a coalition designed specifically for the staffing industry that offers a solution. 

The Staffing Exchange (TSE) is a coalition created in 2009 by Axial Benefits Group, a brokerage firm based in Burlington, Massachusetts. Focused on lowering healthcare costs for self-funded staffing agencies, the program serves as a group healthcare purchasing association that allows staffing companies to achieve savings that would not otherwise be possible. In 2016, TSE collaborated with SISCO to perform administration services for many of the groups in the program. Ever since, SISCO has endorsed The Staffing Exchange as a program that successfully meets the unique needs of companies in the the staffing industry.

TSE was originally developed in response to the creation of the Affordable Care Act, which requires all companies to offer medical insurance to full-time employees and their children (up to age 26). The staffing industry is plagued with high turnover and short employment contracts, making it difficult for employers to offer healthcare benefits at a low cost. At SISCO, we play our part in tailoring the administration and management of benefits to ensure the flexibility needed to support the unique needs of staffing companies.

The Staffing Exchange employs expert vendors in the staffing industry, creating a program that tailors benefits to high turnover and short employment contracts. Buying healthcare benefits through TSE means companies see lower rates that they otherwise would not be able to achieve on their own.

The average rate in the staffing industry for healthcare is $15,000 Per Employee per Year (PEPY). With TSE, the rates decrease to just $2,000 PEPY. In addition, the unused premium from the employees is then returned to the company to reinvest in the firm, or deliver more perks and benefits to employees. In 2018, TSE returned a total of $2.7 million to member companies. All across healthcare, rates are rising year-over-year. However, groups in The Staffing Exchange have renewed benefits with a 0% increase to costs over the last three years. Savings and cost containment are two of the many reasons SISCO is proud to partner with The Staffing Exchange.

In addition to savings, SISCO plays an important strategic role in the administration of benefits for TSE groups. As a part of TSE, companies are offered a full suite of ancillary coverages. In the administration of those coverages, SISCO performs consolidated services and billing to enhance plan performance. With an emphasis on plan savings, SISCO performs adjudication and subrogation services to seek out maximum savings for employers.

To learn more about this highly successful program, contact your dedicated SISCO Account Manager at accountservice@siscobenefits.com.


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