A 2022 survey conducted by the Employee Benefit Research Institute (EBRI) found that 73% of employees stated that health insurance was the most important factor to them when deciding if they would remain at their current job.
Plenty of workers rely specifically on their jobs to receive health insurance coverage at all, and it is clearly something that they won’t give up without a second thought.
But, as an employer, providing health insurance is not necessarily an easy or cost-effective thing to accomplish – especially early in your business. That’s why it is vital to consider the health insurance options offered by a professional employer organization (PEO) before hiring them.
Health Insurance Options Offered by a PEO
One of the major discussion topics to bring up with a PEO prior to hiring them for your company revolves around what kind of health insurance options they can offer. Ideally, the PEO will have an expansive menu of health insurance offerings that it can provide to your workforce.
Among the offerings that may be available include the following:
Group Health Insurance Plans
PEOs can pull together the resources and headcount at the companies that they work for to negotiate better prices on health insurance plans from the insurers. By bringing an entire group along at the same time, the PEO provides a large group of customers all at once for the insurer. In exchange for that, the insurance company is likely to agree to reduce the total cost of the premiums for each individual member. Typically. Only large enterprises will have the capacity to negotiate rates, so using PEO resources helps you benefit from the same thing.
These types of plans cover the following types of services:
- Prescription drugs
- Preventative care
- Medical care
- Hospitalization
These plans are often considered a fundamental aspect of any health insurance offering, and they should always be part of what a PEO offers.
Dental and Vision Insurance
Employees are offered standalone insurance for their dental and vision needs. These services are, in a general sense, part of their overall healthcare, but the insurance coverage is provided separately.
Individual employees may accept or decline these types of insurance depending on their particular needs. However, they are considered to be a routine part of what a PEO offers.
This type of insurance provides coverage for the following:
- Routine check-ups
- Eyeglasses
- Contact lenses
The concept behind this type of insurance is to provide employees with the preventative and maintenance care they require to live healthy lifestyles.
Life and Disability Insurance
Tragedy can strike at any time, and it is always best to be prepared for an unexpected or unanticipated outcome. Taking care of one’s loved ones financially after a disabling accident or after one’s death is something that most of us want to do. Life and disability insurance plans offer some assurances.
These insurance plans can provide employees with the peace of mind that their loved ones will receive a cash payout in the event that something truly awful happens to them. These policies provide the financial stability that a family needs following the loss of a loved one and the loss of that loved one’s income.
A PEO should offer life and disability insurance to any company it partners with. Employees will greatly appreciate the opportunity to purchase the coverage they require for these types of circumstances.
Telehealth and Wellness Programs
In the age of remote work, offering telehealth programs to employees is a must. Some employees might find it difficult to get into a brick-and-mortar doctor’s office, but they still need to be seen. Telehealth is the solution.
These programs allow individuals to see a doctor via a virtual appointment. During that visit, the doctor can review their symptoms and make a diagnosis. This saves the patient a trip to the doctor’s office, frees up more time for the doctor, and allows them to see significantly more patients than would otherwise be possible.
Another benefit of this service is that it can reduce the spread of disease. If someone is sick, the last place that they need to be is out in public, where they can potentially spread their germs to others. Instead, they can schedule a telehealth visit to get taken care of without putting others at risk.
As a bonus, insurance companies also appreciate this perk, as it allows them to reduce their costs. Consider this when speaking with a PEO about implementing such programs.
Supplemental Insurance Programs
Many employers provide their employees with the opportunity to enroll in voluntary supplemental insurance offerings. The upside of this is that employees are allowed to pick and choose the benefits that matter the most to them. Those same employees can determine which insurance programs make sense for them based on their specific budget as well as the needs that they have going forward.
Additional supplemental insurance offerings might include:
- Accident insurance
- Critical illness insurance (such as cancer, etc.)
- Hazardous material exposure insurance
These policies are not necessary for everyone, but some people can benefit from them. Given this fact, it is always nice to know that they are available for those who desire them. A PEO can include this in its offerings.
Benefits of Getting Health Insurance Offerings Through a PEO
Examine the offerings of every PEO that you might eventually opt to contract with. You will likely be surprised by how extensive those offerings can be. There are plenty of benefits to providing employee coverage through the PEO. Among those upsides include:
- Full Compliance with All Regulations—You don’t have to fret that your insurance offerings fall outside of compliance standards. The PEO will ensure that they meet the established standards laid out in the law.
- Improved Employee Benefit Offerings—A PEO can provide improved employee benefit offerings because it has access to the highest-quality benefit offerings and can offer those even to a small business.
- Reduced Costs—PEOs' ability to pool large groups of employees for coverage simultaneously puts them in a great position to reduce the overall cost of those plans.
- Manageable Renewal Rates—An advantage plan groups together your employees’ costs and coverages, balancing out the impact of large deductibles and charges so your renewal rates don’t go up significantly.
These are just a few of the reasons why you don’t want to miss out on the opportunity to set up your benefits plan through an established PEO. They can do wonders to help your employees get the services that they require at the best possible price.
Access Healthcare Through ABO!
ABO is an IRS-Certified PEO who can help your company achieve quality healthcare at a lower cost.
Reach out to ABO today to learn more!
