Fringe Benefit Group Expands Claims Paying Capabilities with Acquisition of Third Party Administrator, EPSI
Fringe Benefit Group, an industry leader in the design, implementation and administration of benefits for hourly and part-time workers, today announced it has acquired Houston-based Employer Plan Services, Inc. (EPSI), a Third Party Administrator (TPA). Terms of the transaction were not disclosed.
“Acquiring EPSI was a strategic move for us for several reasons. First, it underscores our commitment to self-funded insurance solutions and positions us for continued growth with companies that want flexibility in response to the increasing complexities of the Affordable Care Act (ACA). In addition, it enables us to add the claims paying function to our hourly and part-time worker platform providing a seamless experience to our participants,” said Travis West, CEO of Fringe Benefit Group. “We anticipate significant growth in self-funded plans in 2015 and beyond, specifically with Minimum Essential Coverage (MEC) and Minimum Value Plans (MVP) programs as employers with hourly employees strive to meet the ACA mandate. EPSI also provides a substantial amount of combined billing services. We believe these services combined with our proprietary platform offers an opportunity to offer cost efficiency and better service to the employees utilizing our benefits programs.”
Fringe Benefit Group’s purchase of EPSI comes on the heels of its acquisition of The American Worker Plans, an Illinois-based Managing General Agent specializing in limited medical, voluntary and self-funded benefit options for employers with hourly and part-time workforces, in July 2014. The company’s investment in its future, however, is not solely based on acquisitions. It is further investing in proprietary platforms, which include enrollment, case management, billing, eligibility, and 401(k) recordkeeping to present additional value to brokers and their customers. More than $320 million in premium flowed through Fringe Benefit Group in 2014.
The Affordable Care Act (ACA) has greatly changed the benefits landscape. Companies with hourly and part-time employees face the constant challenge of attracting and retaining quality workers. Fringe Benefit Group’s voluntary benefit offering, The American Worker, is specifically designed for employers looking for a plan for part-time employees that is affordable, flexible, and easily administered. The Fringe Benefit Group team works closely with more than 600 brokers nationwide to customize plan design, pricing, communication, implementation, and enrollment to meet their customers’ individual needs. The American Worker provides employers with a best-in-class benefits package, communication and enrollment services, and unique billing and premium payment options. The American Worker benefits include Minimum Value Plans (MVP), Minimum Essential Coverage (MEC), fixed indemnity, inpatient and outpatient supplemental, dental, vision, critical illness, short-term disability, life insurance, and accident plans. The American Worker customers include many of the nation’s leading restaurant, retail, hospitality and staffing companies.
Fringe Benefit Group also helps government contractors bid more effectively on public projects while complying with government regulations through its prevailing wage benefit program, The Contractors Plan. For more than 30 years, The Contractors Plan product has helped companies bidding on and performing work subject to the Davis-Bacon Act and Service Contract Act, state prevailing wage laws, and living and responsible wage ordinances via its integrated platform of products, compliance support and benefits administration. Many contractors are considering self-funding as an option for flexibility in meeting ACA mandates, and the acquisition of EPSI will enable Fringe Benefit Group to easily meet their needs.
About Fringe Benefit Group
Austin, Texas-based Fringe Benefit Group and its affiliate companies have helped employers design and administer fringe benefit programs since 1983. Through its nationwide network of independent brokers and agents, Fringe Benefit Group has established itself as the leader in government contractor health and welfare and retirement plans. Drawing on its expertise in the prevailing wage segment, the company has also emerged as a leader in group benefit plans designed specifically for hourly and part-time workers. For more information, visit www.fbg.com,www.thecontractorsplan.com or www.theamericanworker.com.
Melinda Hart, 210-240-4669