Who’s Escalating Costs Due to ACA?

484668661It’s been interesting to see how certain staffing companies have handled the Escalation of their statutory costs as it relates to the increases they will be facing this year to administer the changes regarding The Affordable Care Act (ACA).

Most companies have approached it either from a percentage of payroll perspective or a fixed dollar amount. From what I have personally seen, the marketplace has been receptive to bill rate increases based upon this new legislation.

All of the companies that I personally work with have built escalators into their contracts for increases in statutory cost. So they therefore have the ability to pass along these types of increases. Without exception, 100% have been able to pass along the full amount of these cost increases in their respective marketplaces. I applaud the industry for being proactive and complying with this new employee benefit as well as educating their clients along the way.

PREMIUM CONTENT: ACA: Staffing firm expectations and plans

Greg Palmer

Greg Palmer
Greg Palmer is the former CEO of Remedy Temp Inc. and founder of GPalmer and Associates, a management-consulting firm focused on the staffing industry. You can find published GPalmer temp labor forecasts and related material on the GPalmer website www.GPalmerandassociates.com.

Greg Palmer

Share This Post


Related Articles

Powered by staffingindustry.com ·