The Phoenix-based business finished 153rd; the second-best ranking by a company based in Arizona. TAG also has the distinction of being the only Arizona company to make the list in 2009 and 2010.
Vice President Heather Smith said her company has made great strides since she and two others founded it in 2002.
They did so strictly because their last company, a payroll service, was bought out.
“In the early years, it was easy,” Smith said. “So easy.”
But the downturn in the nation’s economy has made things much more challenging. TAG Employer Services has to compete against similar firms.
“In today’s market, it’s a significantly larger amount of work” to run a successful employer services business, Smith said. Customers are few and far between.
The demographics of customers have changed, and in order to keep pace, so has the business.
The owners have relied less on trying to be the cheapest benefits provider and more on educating their customers. Going for the quick, easy sell isn’t a top priority.
“TAG is not the cheapest thing in town,” Smith said. “We bring education, experience and knowledge to the table that you’re not going to get from other services.”
Some companies are much too large to have the one-on-one resources that TAG has, she said.
It’s what sets them apart and helps make them successful, she added.
The company’s revenue grew 1,813 percent from 2008 to 2009, with total revenue in 2009 of $27.3 million, she said.
Smith tells her clients: “The more you know, the better chances you have of making it through this economy.”
“Fast growth at any time is a big achievement; fast growth during the past few years is just short of miraculous,” said Inc. editor Jane Berentson. “The Inc. 500 consists of these just-short-of miraculous companies, the ones that through ingenuity and ambition have increased revenue, hired employees, and grown fast in difficult economic times.”
There are only 84 companies in the country that were ranked as Inc. 500 companies in 2009 and 2010. TAG Employer Services is the only company in Arizona that has ranked with Inc. 500 in both years. TAG Employer Services, LLC was founded in 2002. TAG is an Arizona based company that provides payroll and benefit administration for Arizona based companies. TAG is focused on creating customized solutions relating to employee benefit expenses that positively affect the client and employees.
The 2010 Inc. 500, unveiled in the September issue of Inc. magazine (available on newsstands August 24 to November 16 and on Inc.com), is a group of companies that are smaller but much faster-growing than last year’s crop. Aggregate revenue is $11.3 billion—down from last year’s $18.4 billion—but median three-year growth is 1,231 percent, substantially up from last year’s 880.5 percent. The companies on this year’s list employ more than 45,000 people. Complete results of the Inc. 500, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at Inc.com/500.
Despite the ongoing recession, the 2010 Inc. 500 offers a glimpse of the future of the U.S. economy. In the health sector, which saw aggregate revenue of $1.1 billion and a 917 percent median growth rate, businesses are moving forward on cancer and stem-cell research, clinical trials, and medication management. More than 25 percent of companies in the energy sector ($2.5 billion aggregate revenue; 942 percent median growth rate) focus on solar and other alternative sources. Fewer than a third of retailers ($356 million aggregate revenue; 914 percent median growth rate) have even a single brick-and-mortar store. And the number of companies providing technical services to the various branches of the federal government continues to rise.
Although insurance premiums will likely increase as a result of this bill, TAG will always continue to shop your plans and provide creative solutions to keep your costs down. Over the last year, TAG has introduced HSA and customized products that have lowered health renewals by 22% compared to the rest of the market. HSA plans are not dramatically impacted by the new legislation.
At this point, there are too many variables to reasonably predict the future. Having said that, below are my thoughts and answers to a few questions many are asking:
Can anything stop this bill?
Absolutely, there are many firewalls before the bill can be enforced.
How can I learn more?
Full Text of Bill http://thehill.com/images/stories/whitepapers/pdf/senatebill.pdf
Summary of Health Care Bill (HR 3590) & Proposed Reconciliation changes (HR 4872) and original House bill (HR 3962). Note that only HR 3590 is positioned to become a law at this point. http://www.kff.org/healthreform/upload/housesenatebill_final.pdf
What can I do?
Unfortunately, we have already learned that the Democrats have chosen to ignore the national polls and unprecedented outreach by the American population. The most practical steps we can take at this point would be to support a regime change in November. This means donating to candidates and encouraging voter turnout in several key states. Many strategies are discussed in http://blog.heritage.org/2010/03/22/morning-bell-repeal/.
What taxes will be increased?
What are the consequences if the bill becomes the law of the land?
If the bill is enforced, insurance premiums will likely increase. Carriers will be required to offer coverage to all individuals, without price adjustment, despite any pre-existing health issues. At first glance, this concept may sound charitable; however, consumers are left with no incentive to purchase insurance until after they get sick. The “mandatory” insurance provisions of the bill result in minor fines that are far less than the cost of insurance. This situation has been likened to buying fire insurance after your house burns down.
As a result, insurance companies will have no choice but to charge their other policy holders the cost of insuring the disproportionately sick individuals. This is a self-defeating cycle that many believe is designed to ultimately guarantee a full government takeover of the health insurance system.
The bright spot is the law of unintended consequences. Even if the law is not struck down or repealed, the private market has often shown ingenuity in overcoming government intrusion. Many doctors and pharmacies are already dropping out of the Medicare system. Many doctors will likely not subscribe to the newest government program either. The proliferation of HSAs (Health Savings Accounts) and other alternative insurance financing programs allow many Americans to effectively opt out of the government system.
This individual opt-out will allow medical providers and medical consumers to transact 90% of medical care without the involvement of any insurance or government entity. Should this happen, medical costs will finally benefit from the market forces that have reduced the pricing of everything from a loaf of bread to a high-def TV. The rise of medical costs is not inevitable. One area that has already experienced limited government and insurance carrier involvement is the Lasik Eye industry. Despite major developments of new technology, Lasik procedures have gone down in the last 15 year from $5000 to $1500. Reintroducing free-market principals back into our healthcare system could have similar effect.
