Offering health insurance to employees can be complicated and expensive, especially for a small business. There are a lot of requirements and laws around employee health insurance that can get you in trouble if you don’t follow them. There are also administrative costs and time to consider for each insurance option. If you don’t want another thing to worry about, consider partnering with a PEO for your health insurance needs.
Can PEOs Take Charge of Health Insurance?
Yes. Working with a PEO often gives you access to health insurance and other benefits for your employees. Though PEOs can take care of a lot of aspects of employee health insurance, you still have control over final decisions. For example, you control what types of plans are offered, including any supplemental benefits packages and how much the company contributes to each benefit (some minimum contributions may be required).
How Does a PEO Manage Health Insurance?
Because PEOs offer benefits to a lot of clients, they are able to provide benefits to small businesses that would otherwise be unavailable. Additionally, these benefits come at discounted bulk pricing, which can help you save money. PEOs are often available to answer employee questions, handle initial enrollment communications, and manage any necessary paperwork. Beyond that, a PEO will help you and your employees prepare for benefits renewal during open enrollment.
Pros and Cons of Letting PEOs Handle Health Insurance
- Lower cost- PEOs get bulk pricing on most benefits, letting them offer them to your employees at a discount.
- Less administration- When you outsource employee benefits, you have more time to take care of other company needs.
- More options- PEOs offer benefits options that aren’t usually available to small businesses.
- Improved compliance- PEO companies use professionals to handle benefits processing, so you limit your risk of falling out of compliance.
- Limited flexibility- Some PEOs have limited options for you to choose between which can limit the types of plans you can offer your employees. Finding a PEO with multiple plan options will give you the most flexible benefits package for your employees.
- Legal risks- While PEOs can help keep you in compliance with employment laws, you are still legally responsible for your company. Make sure you Understand the responsibilities of the PEO and your company to help you stay in compliance
Is PEO Health Insurance Good for Small Businesses?
Working with a good PEO can be a huge benefit for small businesses. Helpside offers health insurance for small businesses along with many other employee benefits and administrative services. If you want to learn more about Helpside’s health insurance, reach out to us at firstname.lastname@example.org.