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How Does Insurance Work With a PEO?

What does a PEO mean for health insurance?

For small and mid-sized business owners, securing high-quality, affordable employee benefits can be a real challenge. Without the numbers and bargaining power of a larger company, building a competitive benefits package – that you can afford – just isn’t a reality. But there is another option. One that not only gives you access to top-tier benefits, but also provides comprehensive HR support to help you free up more time in your day.

When you partner with a professional employer organization (PEO), you gain access to Fortune 500-level health insurance and benefits at rates that work for your bottom line. How is that possible? A PEO, like G&A Partners, is able to pool their large portfolio of clients, including thousands of employees, to unlock the kind of corporate level buying power that helps them to provide PEO health insurance and other benefits that rival those offered by big companies.

Partnering with a PEO also lessens the administrative load of managing health insurance enrollment, claims processing, and more. As most business owners know, employee benefits administration can be very time-consuming, and unloading these tasks onto a PEO partner can help you get back to focusing on revenue-generating initiatives.

Two women smile wearing headsets inside of a call center.

How do PEO employee health plans work?

PEOs such as G&A work closely with reputable national health insurance providers to secure comprehensive and high-quality, PEO employee health plan options. By partnering with a PEO, you can provide your workers with access to these more robust employee benefits packages.

Providing a full range of insurance options, including medical, dental, vision, and more, demonstrates that you care about the health and well-being of your employees and their families. That speaks volumes to current employees and job seekers, who rank health benefits and salary at the top of their list. Companies that leverage PEO services for quality medical coverage gain an edge in hiring (and retaining) qualified employees.

To learn more about PEO health insurance and employee health plans, schedule a consultation with a G&A Partners HR expert.

What are the benefits of using a PEO to offer employee medical insurance plans?

As discussed above, small and mid-size organizations lacking significant buying power have few insurance options for employees – and any affordable options often include high deductibles and minimal coverage. Due to strong negotiating power, medical insurance through a PEO includes better quality health care coverage solutions, and the PEO manages all benefits administration functions on your behalf.

Create value through negotiating power.

If you’ve ever explored purchasing a health insurance plan for your small business (or even yourself), you know it can be expensive. Because PEOs are able to leverage the employees of all their clients, they have strength in numbers when it comes to negotiating a good price from an insurance company.

Think of it this way: the per-unit price of a roll of paper towels is lower when you buy 30 from a wholesale club like Costco than when you buy a single roll from the tiny convenience store in your neighborhood. Because you’re buying more product, you can secure a better overall price.

It works the same for PEO health insurance. Instead of you approaching the insurance company with just a handful of employees (no matter how large the bottom line at your small business), your PEO comes to the negotiating table with hundreds or even thousands of employees. It’s a more lucrative overall deal for the health care provider, which allows your PEO to offer you and your employees better plans with lower health care costs.

And that's only part of the recipe for how a PEO can offer you and your employees lower healthcare costs. You'll likely also realize significant savings through smaller year-to-year increases. Because a partner like G&A remains solely focused on creating value by leveraging PEO options on your behalf, it's a strategic partnership that keeps the benefits flowing and the savings growing. Contact our HR experts today to get started.

Better benefits for your employees. More time to grow your business.

It’s true – time is money. And, in the past, you’ve likely felt discouraged by both the price of quality health insurance and the time-consuming details involved in human resources administration (even for the smallest of businesses).

With a PEO partner handling benefits administrative tasks, you gain back time to improve the product or service you provide to your customers, instead of handling insurance paperwork or answering employee questions about their coverage options.

More tangibly, the fees you pay to a PEO to have them manage your benefits and other HR administration responsibilities, are often less than the cost of keeping a full-time HR professional on staff at your company. And a PEO gives your employees the opportunity to speak with a dedicated and experienced team of HR professionals about their needs, while giving you back precious time to focus on growing your business.

On average, companies that work with a PEO save $450 per employee on benefits administration. But a healthy bottom line is not just about the numbers. Collaborating with a PEO creates exceptional value by boosting efficiency and cost-effectiveness, and by providing expert support for your team members.

What are the rates for PEO health insurance?

PEO health insurance rates vary widely based on company size, demographics, industry, location, and the selected coverage. The benefits experts at G&A Partners focus on providing the highest level of client service, and they will work closely with you to build health insurance options that rival those of large corporations, while still working for your budget.

Why G&A

G&A’s dedicated team of benefits specialists can oversee and administer every aspect of your benefit offerings, deliver customer service to your employees, and help ensure you comply with all federal and state regulations. We also leverage the buying power of our 55,000-plus employee base to procure top-rated benefits from the nation’s most trusted carriers. When you partner with us, you gain access to an impressive list of benefits options at a price you and your employees can afford.