Staffing firms are realizing significant growth nationwide due in part to the distortions caused by the ACA.
- Client companies are attempting to stay under 50 employees.
- Larger clients are outsourcing to avoid healthcare costs for all labor.
- Staffing firms can create "virtual carve-outs"
According to some studies, the Staffing Industry has almost returned to pre-recession payroll levels. These are all great shifts allowing the Staffing Industry to grow. The use of a Staffing Firm is a legitimate and sound method of Risk Transfer. The clients are now transferring their real or perceived ACA risk to the Staffing Industry.
The question remains, "what happens next?" We will not return to the health system we had in 2005. We will not keep the the current ACA as it is neither politically or economically sustainable. No one knows what the future system may look like. It may be a single-payer plan or an HSA based private/public hybrid. Staffing may or may not be an effective risk transfer method in 2034, but as far as 2014 is concerned it makes a lot of sense.
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