How to Enhance Your Employee Benefits with PEO Health Insurance

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In today’s competitive job market, offering robust employee benefits is crucial for attracting and retaining top talent. In fact, more than 70% of employees are happier at their jobs the better their benefits are. One effective way to achieve significantly better benefits is by securing PEO (Professional Employer Organization) health insurance.

At Aspen HR, we provide PEO health insurance solutions designed to enhance your company’s benefits package, making it more attractive to current and prospective employees. Below, we’ll explore the advantages of PEO health insurance, how it can streamline benefits administration, and the steps you can take to implement it in your organization.

Understanding PEO Health Insurance

What is PEO health insurance? PEO health insurance refers to the health coverage provided by a Professional Employer Organization, a firm that provides comprehensive HR solutions (including due diligence, payroll, benefits, and regulatory compliance) by co-employing your workforce. When you partner with a PEO, you gain access to their health insurance plans, which are often significantly more competitive and comprehensive than anything smaller businesses can secure independently.

PEO health insurance serves as a strategic tool for enhancing employee benefits by pooling employees from multiple companies, allowing PEOs to negotiate better rates and more extensive coverage options. This approach not only provides your employees with superior health benefits but also positions your company as an employer of choice in a highly competitive job market.

Advantages of PEO Health Insurance for Employee Benefits

One of the primary benefits of PEO health insurance is that it is often significantly cheaper for a company with fewer than 1,000 employees to secure medical insurance from a large-group PEO plan versus the open market. PEOs can offer a variety of plans that include medical, dental, vision, life insurance, and disability coverage. These plans often come with more competitive rates than those available to small businesses, thanks to the PEO’s ability to leverage their larger pool of employees to negotiate better terms with insurers.

Additionally, PEOs provide customizable benefit plans that can be tailored to meet the specific needs of different employee groups. This flexibility allows you to offer benefits that are most relevant to your workforce, enhancing employee satisfaction and retention. For example, some employees might prioritize vision and dental coverage, while others may value comprehensive medical plans with low deductibles.

At Aspen HR, we have successfully enhanced our clients’ benefit offerings through our PEO health insurance solutions. One recent case study involves a VC-backed fintech company that partnered with us to revamp their payroll and employee benefits package. By leveraging our PEO health insurance, we secured a Fortune 500-level benefit offering, which saved the firm $370k annually. Needless to say, both the investors and their employees were thrilled.

Streamlined Benefits Administration via PEOs

Partnering with Aspen HR not only enhances your employee benefits but also simplifies the administration of those benefits. Managing health insurance and other benefits can be a time-consuming and complex task for businesses, consuming valuable resources. PEO benefits administration takes this burden off your plate, allowing you to focus more on your core operations and employee engagement.

By handling the intricacies of benefits administration, Aspen HR reduces the workload on your HR team. This includes managing enrollments, handling claims, and ensuring compliance with healthcare regulations. As a result, your business can operate more efficiently while still providing high-quality benefits to your employees.

Assessing and Comparing PEO Health Insurance Rates

When considering PEO health insurance, it’s essential to assess and compare the rates effectively. Here are some tips to help you evaluate PEO offerings:

  1. Coverage Depth: Look at the range of services covered under the PEO health insurance plans. Ensure that the plans include comprehensive medical, dental, vision, and other essential health services.
  2. Co-pays and Deductibles: Compare the co-pays and deductibles associated with each plan. Lower co-pays and deductibles can make the plan more attractive to your employees, but will have more expensive monthly premiums.
  3. Premiums: Analyze the premium rates. While PEO health insurance rates are generally more competitive, it’s crucial to ensure they fit within your budget.
  4. Additional Benefits: Consider any additional benefits offered, such as wellness programs, employee assistance programs, and telehealth services.

By carefully comparing these factors, you can choose a PEO health insurance plan that offers the best value for your company and employees.

Implementing PEO Health Insurance: Steps for Businesses

Implementing PEO health insurance involves several steps, from initial evaluation to full integration. Here’s a step-by-step guide to help you through the process:

  1. Initial Evaluation: Start by assessing your current benefits package and identifying gaps or areas for improvement. Consider conducting an employee survey to gather feedback on their preferences and needs.
  2. Research PEOs: Research potential PEO partners and compare their offerings. Look for PEOs with a strong reputation, comprehensive benefits packages, and competitive rates.
  3. Implementation: Work with the selected PEO to implement the new health insurance plans. This includes enrolling employees, setting up payroll deductions, and communicating the changes to your workforce.
  4. Ongoing Management: Maintain regular communication with the PEO to manage the benefits effectively. Monitor employee feedback and make adjustments as needed to ensure continued satisfaction.

PEO Health Insurance: The Aspen Advantage

Partnering with a PEO like Aspen HR can significantly enhance your employee benefits, helping your company stand out in an increasingly competitive job market. If you’re ready to explore how our PEO services can help you offer improved benefits to your employees, contact Aspen HR today to discuss your needs and get started on enhancing your benefits package.

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