How Professional Employer Organizations help Small Businesses with Health Insurance
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Professional Employer Organizations (PEO) help small businesses in a multitude of ways and one of those is Health Insurance.
Aside from salary and wages, the second biggest non-cost of goods expense for small business is Health Insurance. Offering quality, affordable health insurance is vital to attracting and retaining the best talent for your team.
If you are running a growing company you know offering your employees benefits is paramount. However, in the open market, there are very few options that aren’t either offering subpar coverage or are extremely expensive. The open market also carries heavy annual renewal costs that range from 10-20%.
Small businesses find it difficult to find solid benefits for their team because most carriers don’t want to deal with SMBs. But, there is a way that small businesses can find and offer big company benefits that are still cost-effective - it’s a Professional Employer Organizations.
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PEO's help small businesses get control of their Employee Benefits in a few ways.
The PEO gives their clients access to Fortune 500 employee benefit plans. They offer plans from National carriers that range from HMO, EPO, PPO, POS, and HDHP.
The Rates and Premiums are affordable and the benefit plans are much richer than what’s found by small businesses in the open market.
PEO's manage their benefit plans to keep their rates down. Because PEO's are buying benefits for thousands of employees, the annual renewal fees are much lower than those you’re experiencing in the open market.
The PEO handles all of your Enrollment, Administration, Renewals, Open Enrollments, and COBRA.
HSA, FSA, and HRA accounts are managed and administered by the PEO or a PEO partner.
PEOs offer a single point of contact for all health insurance plan issues and questions for your employees. No more waiting on hold.
The alternative is to allow benefit issues to weigh heavily on a small business and drain valuable resources.
In addition, a PEO can help you compete for the best talent. Being able to offer your employees quality, affordable benefits can distinguish between you being an employer of choice versus just an employer.
If you haven’t explored the many benefits of joining a PEO, you should. Thousands of companies have alleviated the burdens that go along with running a small business, by working with a Professional Employer Organization.
If you’d like to see exactly how a PEO can benefit your small business, schedule a chat.