Managing healthcare insurance for a small business can be the second-largest expense after employees salaries. A PEO company can help your business minimize costs, and add value to insurance plans.
What is a PEO?
For businesses that are growing, but not ready for a full-time HR person, a professional employer organization (PEO) is a good option. The PEO is an outsourced solution for HR, payroll, benefits, compliance, and workers compensation. This also allows the employer to focus on the day-to-day work, and the PEO will handle your business backend office. Retire at 21 to understand the different types of PEO companies.
More than Healthcare Insurance
PEO companies provide an entire package of HR employee benefits and services. Outsource your human resource needs to a PEO company, and you can also access services such as health insurance administration, workers compensation administration, unemployment insurance claims and management, full payroll services, recruiting and background checks, and onboarding new employees.
Advantages of using a PEO company to offer healthcare:
- Competitive benefits and health insurance, a PEO company relies on purchasing power and negotiating affordable benefits and insurance coverage
- Employers time is freed up with a PEO company looking after HR responsibility so that you can focus on your business operations.
- Liability insurance, a PEO company, gives your business access to licensed HR professionals and attorneys that can help mitigate employment-related risks.
- Up-to-date regulations a PEO company ensures that the company is always compliant.
Healthcare with a PEO vs. Healthcare on Your Own
On Your Own
- You have to figure out how to procure health insurance on your own with limited options. On your own, you have three options for finding health insurance coverage, which is a health insurance carrier, a broker, or the open market. A small business cannot afford a robust insurance plan that can be offered to larger corporations.
- No support for education using any of these options on your own – brokers offer limited knowledge. Still, if you buy direct, there’s no insurance to help your employees in making well-informed decisions.
- Limited awareness into how the health insurance plans change year to year – there’s no advocate to help for increases in the future, you won’t find out what a new plan costs until the time comes to renew and enroll.
With a PEO
- Access to a PEO health insurance carrier – in a PEO partnership, small businesses have advantages in finding competitive health insurance plans, because PEOs have select carriers.
- Not dealing with health insurance administration – Healthcare insurance through a PEO will give you access to better products and a more natural way to manage health insurance costs and administration.
- PEO manages the carrier relationship – A PEO company will handle renewals, open enrollment, employee education, and onboarding.
- Satisfied employees – A PEO companies health insurance benefits add value to employees lives. Partnering with a PEO gives your employees competitive health insurance coverage, which in return gives you happy employees that feel valued.
Takeaway
A PEO company has the numbers that a small business owner doesn’t when it comes to needing health insurance for employers and employees. A PEO is often a good option for a little to mid-sized business to get affordable health insurance, better benefits, and human resource management.
It doesn’t matter if you are looking into partnering with a PEO for healthcare insurance, or are interested in all of the services they can provide, research PEO companies for the best rates.