Receive our blogs in your inbox

HR tips from industry experts.

PEO Services

Group PEO Health Insurance Plans and How It Helps Retain Employees

PEOs Allow Business Owners to Offer Comprehensive Employee Benefits at Affordable Rates

peo group health insurance

Group PEO health insurance plans are an increasingly important benefit for organizations and employees in today’s job market. A PEO (Professional Employer Organization) is an outsourced solution for HR, payroll, workers compensation, compliance and benefits like health insurance. PEO health insurance plans help provide the employer the time they need to focus on the day-to-day business while employee benefits are being effectively managed. This streamlined process is one of the major contributors to helping companies retain employees by meeting or exceeding their needs in terms of health benefits. 

With low unemployment, labor trends show business owners making competitive and comprehensive employee benefits programs a top priority to attract and retain good employees. When employees are healthy, the business benefits. Preventive care and affordable access to health care prevents employees from taking extended periods of sick leave, allowing business to be more productive and profitable. Employees who feel supported mentally and physically also tend to stay with a company longer.

However, few companies, especially small businesses, can efficiently employ enough staff to support a strong benefits program, and even if they can, the cost is steep and should be weighed against the option of having a complete PEO Benefits Department. Working with a Professional Employer Organization to offer PEO group health insurance and other employee benefits allows business owners to offer health coverage without sacrificing as much time or money as they would spend to figure out how to administer a benefits program on their own.

Top Benefit Trends

  • Health for the Family

  • Flexible Spending Accounts

  • Retirement Options

  • Paid Time Off

  • Flextime

  • Wellness Program

  • Life Insurance

  • Short and Long-Term Disability

PEOs are designed to combine employee benefits programs with payroll services, human resources and workers’ comp insurance to offer a “one-stop shop.” Working with a Professional Employer Organization to offer PEO group health insurance allows employers to provide great benefits affordably, save time and money, attract and retain top talent and remain compliant. Because PEOs spread costs across a larger pool of employees, businesses can more affordably offer employees group health insurance and other employee benefits.

Broad Array of PEO Group Health Insurance Options

A PEO typically works with multiple insurance carriers to offer a broad array of health care options that include dependent coverage. An example of a PEO group health insurance plan includes the following.

Top Benefits of a PEO Group Health Insurance Plan

  • Access to a large number of doctors and hospitals
  • Online access to health information, claims, and resources
  • Discounts on things like eye exams, glasses, contact lenses, weight loss programs, fitness memberships, exercise equipment and hearing aids

As for the employer cost, Health Maintenance Organizations (HMOs) may be a good option, but have more limited doctor networks. Preferred Provider Organizations (PPOs) allow employees more flexibility to choose from a broader array of doctors. A PEO offers both options as well as High Deductible Health Plans with Health Savings Accounts.

Professional Employer Organizations Provide PEO Group Health Insurance and Other Benefits

PEOs assist in selecting health plans, then support clients with the necessary tools to administer them. PEOs also offer medical savings accounts and other health benefits that employers can elect without any employer contributions, such as dental and vision plans. The PEO may administer benefit plans employers already have in place. Benefits administration with a PEO group health insurance plan includes a dedicated team to assist with carrier communications as well as online benefit enrollment, pre-tax elections, plan summaries and Exchange Notices.

PEO Benefits Management Services:

  • Offering eligibility notifications for adding newly hired employees
  • Processing employee enrollment, life change and termination requests
  • Administering COBRA
  • Reconciling bills and providing timely payment to carriers
  • Managing escalated billing, claims and service issues

Group PEO Health Insurance Plans are ACA Compliant

Although many changes have taken place with the Affordable Care Act, it still requires employers with 50 or more full-time and full-time equivalent employees to offer employee health benefits or pay a tax penalty. PEOs work to find innovative ways to cut costs through carrier incentive programs, alternate funding and MEC plans. MEC plans offer employees 100% covered wellness services and immunizations and help employers avoid the 4980H9a) penalty by complying with the first hurdle of the Employer Mandate. A PEO assists employers in compliance with state and federal regulations like ACA, COBRA and ERISA.

At FrankCrum, we consult with you to help you determine whether offering a benefits package is feasible and what type you desire. MK Medical Center is one of many FrankCrum clients that opted for health insurance coverage and has seen business and staff levels grow as a result. In addition to group health insurance, adopting FrankCrum’s 401(k) is very attractive for business owners in terms of complete flexibility, administration and costs. Call 1-800-277-1620 to learn more.

6 Ways a PEO Boosts Your Productivity

David Peasall, VP, Human Resources
David Peasall, VP, Human Resources

David Peasall joined FrankCrum in 2010. Since that time, he has served as the Vice President of Human Resources. Serving in the Army, he began his 20+ year career in human resources and benefits administration and has held several management positions within the corporate and public human resources environments overseeing employee benefits sales and administration, recruitment, compensation, employee relations, organizational development, and compliance. He has the nationally recognized designation of Senior Professional in Human Resources (SPHR), PPACA certification from NAHU, and a Bachelor’s degree from Barry University with a dual major in Human Resources Management and Health Services Administration. He has written for the Society for Human Resources Management, HR Insight, Proyecto Magazine, and for online publications in the restaurant and health care industries. While not at work, this Florida native loves spending time with his family, preferably boating, fishing, and diving the beautiful waters of Florida.