PEO versus traditional group health insurance

Through a PEO, your employees join a large pool, which can produce better rates and a richer benefit menu than a fifteen-person business could buy alone — particularly if your group's health history is poor. In exchange you accept the PEO's menu, its fees and a co-employment agreement.

A traditional group plan keeps you in charge of design and contributions and gives you a renewal you can shop. For a healthy group of reasonable size, a direct group or level-funded plan frequently beats the PEO on total cost. The honest way to choose is to price both against the same census.

An estimate for planning, not a quote. Medicare and the Marketplace set your real figures.