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PEO vs. Broker
Benefits & Compensation
PEO vs. Broker
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
I am new to an organization that is currently with a PEO but is not happy. Any pros and cons to using another PEO vs. a traditional broker for the insurance?
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Forums » Topic Forums » Benefits & Compensation » PEO vs. Broker
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Re: PEO vs. Broker
posted at 10/31/2012 1:57 PM EDT
on Workforce Management
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Posts: 148
First: 9/29/2011 Last: 12/10/2012 |
If the insurance is your big concern with your PEO, then I would definitely contact a broker to do a little research and perhaps present some alternatives. If you're a small employer, you may not be pleased with the results since it's the smaller employers who've been hammered with, in some cases, exhorbitant rate increases. A big advantage to a PEO is that the insurance risk is spread over a much larger employee population and, therefore, you may get lower rates and more stability in your year-to-year rate increases. But definitely do the due diligence! Are there other areas of being with a PEO that are causing concern? Those usually tend to involve customer service and responsiveness, but it's hard to put a price tag on that. |
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Re: PEO vs. Broker
posted at 11/1/2012 8:43 AM EDT
on Workforce Management
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Posts: 11
First: 11/15/2011 Last: 12/6/2012 |
Yes, the insurance rates are the main concern. We were told that we could not be put in our current PEOs pool because of our experience. Customer service was an issue as well. My problem now is in order to get quotes from a broker they said we need to designate them as agent of record; can we do this and still get quotes from other PEOs? |
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Re: PEO vs. Broker
posted at 11/1/2012 9:57 AM EDT
on Workforce Management
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Posts: 148
First: 9/29/2011 Last: 12/10/2012 |
I think you can still get quotes from other PEO's but I'm not entirely sure. I do know that you will have to designate a broker/s as an agent of record so they can get quotes from providers. If the reason for not being in the PEO pool is correct, then I think you've got a serous health insurance cost issue on your hands. Health insurance carriers may give you a break for one year on costs since a) they're trying to buy the business, and b) they're relying on runout claims from your current plan to offset some of their reimbursements for the next year. But stand by for a whopping huge increase the next year. You might want to explore an HMO option. Many use a community experience rating rather than small group individual policy which would be greatly to your advantage. Good luck! |
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