By joining a PEO, companies join a much larger group of employees (a.k.a. risk pool). This allows small employers to have access to EPLI, benefits, health insurance, dental, vision, and 401K coverage often at a lower rate.
Now more than ever, large group health plans are packed with more robust benefits, and may enjoy lower rates based on a composite rate. Large health plan underwriters analyze claims data for the entire risk population, and create standardized rates for all the risk categories covered under the plan. This is in direct contrast to small group age-banded rates which can be different for each employee based on age and location (age banded plans). Small groups may find that their “ACA compliant” health plan has increased in costs with a significant decline in covered services and networks.
By joining a PEO’s large group plan, better benefits and rates may be available. Investigate your options today? Contact ManagedPAY!