How does health insurance work with a PEO?

There´s no doubt an essential requirement in these times is health insurance, because it basically works by protecting people’s assets from some high costs of medical care. Business owners know their companies should provide good coverage associated with this subject. It’s actually considered the second largest expense for companies, after the salaries.

Managing health insurance the right way is key to administrate costs while adding value to the plans for your employees. 

After a company signs a co-employment agreement with a PEO, employees will have access to the same health plan offered to all the businesses that have signed co-employment agreements with the PEO. 

Previous paragraph means that your employees can have access to health plans that are usually expensive for small or mid-sized businesses to offer, and this is because there’s a big amount of employees to absorb the risk of anyone getting sick, or having some other issue related with health.

Health insurance definition in simple words

This is a type of insurance that covers medical expenses that arise due to different illnesses. These expenses could be related to hospitalisation costs, cost of medicines or doctor consultation fees.

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How does health insurance work with a PEO?

The changes we`ve been facing since last year are difficult for all of us, so chances are everyone is thinking about health insurance as the most important benefit that can be provided. Here’s how health insurance works under a PEO:

1 | PEO`s have more options when it comes to health insurance carriers, because they have access to more product offerings they can make available to everyone. 

2 | With a PEO you’ll find not only a better product, but an easier way to manage health insurance costs and administration.

3 |  They can manage the whole carrier relationship from the very beginning, starting when you select the policy that fits the employee’s needs, till the end of the year when it is necessary to renew.

4 | Employees will be really satisfied with the options, since PEO offers health insurance that really adds value to their life, besides this way companies protect the investment made for employees.    

If you want to know more about how you can remove the considerable time and all activities related to managing health insurance plans we are here to help you. MidtownHR’s is focused on simple solutions for payroll and taxes, propose benefits that really feel like benefits, keep up with employment law and also help protect your team, ¡Let’s talk!