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Tampa-based Benefits Solutions Group Inc. has merged with AGIS, an independent agency based in Winter Park that offers group benefits to companies. The company's former owner believes he is simply operating ahead of the curve as Obamacare goes into effect.
“There is going to be more consolidation because of health care reform,” says Robert Pariseau, who now becomes president of AGIS Tampa under the merger announced May 19. He notes that 10 other benefits firms in the Tampa Bay market may join AGIS in the next few years.
Besides being able to offer greater access to employee benefits and human resources services, Pariseau says, mergers like this one will provide expertise to companies that will need to navigate the finer points of President Barack Obama's reform package in years to come.
“Businesses are going to need more guidance than ever,” he tells Coffee Talk. “There isn't going to be anybody dabbling in this.”
Pariseau, who started his own firm more than three years ago, points to three key areas where companies may need help:
• Will it be more economical for employers to provide health care benefits to workers at a minimum level, or eliminate coverage and pay a penalty instead?
• If insurance companies are required to return 85% of premiums in the form of claim payments or rebate the difference to companies with at least 100 employees, will that affect the level of care currently being offered at a 75% average?
• How onerous will compliance and reporting become, especially with changes continuing as reforms are implemented?
The amount of involvement that will likely be sought from brokers such as AGIS will necessitate more consolidation within the group benefits industry, Pariseau observes. “This has always been a fragmented business,” he says, “but it's not going to be anymore.”
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