Competitive Health Insurance for Small Business: The PEO Advantage

Health insurance for your small business clients can be a major headache. Costs are high, options can be confusing, and clients are often left feeling like the whole process is stacked against the little guy. That’s where Professional Employer Organizations (PEOs) can make a difference for them.

PEOs simplify insurance and have the potential to offer small businesses competitive rates and big-league benefits and services. However, as a broker or trusted advisor, you may question the need to work with PEOs, even as clients rush to you for solutions.

In this blog, we’ll unpack what makes PEOs game-changers, why brokers shouldn’t sit on the sidelines, and how partnerships with PEOs can elevate your offerings. Let’s start by breaking down what PEOs really do.

Why PEOs Are More than Just HR Support

At first glance, PEOs may look like glorified HR help, but they’re so much more.

At the heart of their value is the co-employment model, a setup that often gets misunderstood. Here’s how it works: the business retains full control of its operations, like hiring, firing, and day-to-day decisions. The co-employment relationship gives your clients exclusive access to HR support, payroll, tax services, and benefits administration that they would otherwise have to obtain a la carte. Under the co-employment model, neither you nor your client have to manage relationships with multiple vendors, their systems, services, and invoices.

The value lies in the shift in the administrative burden. Companies that partner with PEOs no longer need to juggle keeping up with workforce planning, payroll taxes, or benefits administration or hire and develop employees to perform these functions.

The PEO helps with all of that, leveraging its scale and expertise to secure better benefits, simplify processes, and give business owners peace of mind when it comes to compliance.

Here’s a snapshot of what PEOs help business owners with:

• Payroll and Taxes: Processing paychecks, managing tax withholdings, and increasing compliance.
• HR Administration: Onboarding employees, training, and advising on performance management.
• Employee Benefits: Easy, streamlined administration, big-business group health and ancillary plans.
• Compliance Expertise: Helping your clients stay on top of employment laws, tax codes, and regulations so you don’t have to.

The co-employment model isn’t a loss of control but a partnership. Businesses get expert backing while staying in charge of their destiny. A PEO’s goal is not just to be helpful but to empower business owners to focus on fulfilling their dreams.

The PEO Edge: Securing Competitive Health Insurance for Small Business

Partnering with a PEO can make a major difference for your small business clients aiming to offer top-tier benefits to their employees without breaking the bank.

For example, according to a study by the National Association of Professional Employer Organizations (NAPEO), businesses that team up with PEOs see an average annual return on investment (ROI) of 27.2%, thanks to cost savings in areas like HR personnel and health benefits.

Here's how PEOs make this possible:

• Economies of Scale: PEOs have access to plans and rates typically reserved for large corporations, resulting in significant savings for your clients.
• Comprehensive Benefits: PEOs provide access to a wide array of plans, including medical, dental, and vision coverage, enhancing employee satisfaction and retention.
• Administrative Relief: They handle the nitty-gritty of benefits administration, including enrollment to COBRA, freeing up business owners to focus on growth.

For brokers, aligning with PEOs means being able to offer clients a robust solution to a variety of challenges they face as business owners and strengthening your value proposition in a competitive market.

Addressing Concerns About PEOs: Beyond Health Insurance for Small Business

As a broker, partnering with a PEO gives you more to offer your clients, streamlines the back-end work, and provides professional support along the way. But we get it — working with a PEO comes with questions. Let’s break it down.

“Will My Clients Lose Control Over Their Health Benefits?”

The right PEO will understand that every employee has unique needs, and every small business owner has different priorities when it comes to benefits. That PEO will provide access to flexible and affordable plan options to meet those unique needs. On top of that, they’ll handle the administrative workload that comes with administering health plans.

Ultimately, working with a PEO means expanding and streamlining your services, providing flexibility and convenience that can’t be matched when businesses go it alone.

“Won’t PEOs Replace My Role?”

This is a common concern, and it’s not true.

As a broker, choosing to partner with a PEO means expanding your service offerings, not replacing them. The PPO focuses on the nuts and bolts of negotiating rates, managing compliance, and administering benefits. Meanwhile, you remain the trusted advisor, helping clients select the right health insurance for their small business and develop long-term strategies. When a PEO delivers top-tier benefits, it’s you who looks like the hero.

“Why Would Clients Use a PEO When I Already Offer Health Insurance?”

The difference lies in streamlined administration paired with expertise.

PEOs give small businesses access to the kind of health insurance rates and options typically reserved for Fortune 500 companies – that means great benefits at a lower cost.

However, you shouldn’t just settle for enhanced access. Working with top PEOs also means these benefits are administered by proven experts, giving brokers and small businesses convenience and peace of mind they won’t find in the traditional marketplace.

In short: working with the right PEO is an upgrade, not a replacement, and it complements the solutions you already provide.

“Is Partnering with a PEO Really Worth It?”

Studies show that businesses partnering with PEOs save money on health insurance, reduce employee turnover, and spend significantly less time on HR tasks.

It doesn’t stop at health insurance. PEOs offer comprehensive solutions that improve the overall employee experience. When your clients thrive, your relationship with them only gets stronger.

By working with a PEO, you’re positioning yourself as a forward-thinking advisor who’s ready to help clients take their health insurance offerings to the next level. That’s a win for everyone.

Success Stories of PEO and Broker Collaborations

Sometimes, the best way to understand the value of a PEO is to see it in action. Here are two stories that show how BBSI has helped brokers and small businesses not only survive but thrive — especially when it comes to delivering competitive health insurance and other benefits.

Case Study 1: Helping a Broker Stand Out

Nick Scamperino, an independent broker with Amorelli Roseman and Associates, transformed his business by partnering with BBSI.

Although initially skeptical, he quickly saw the benefits BBSI provided to his clients, from competitive health insurance options and hands-on support. Over four years, Scamperino retained 100% of his clients, expanded his offerings, and freed up time to grow his book of business. As he put it, "BBSI makes us look like superheroes."

Case Study 2: Streamlining Benefits After an Ownership Change

Emerald Site Services faced a major challenge after an ownership change left them scrambling for affordable health insurance and more efficient operations.

BBSI stepped in, securing a competitive benefits offering, simplifying payroll, and implementing new safety protocols — all within a tight deadline. With these changes, Emerald reclaimed time for strategic growth while ensuring their employees remained covered and their business remained compliant.

Together, these stories highlight the key advantages of PEO partnerships: access to high-quality health insurance for small businesses, simplified administration, and a trusted partner to tackle even the toughest challenges.

Become the Hero: Partner with BBSI Today

Partnering with a PEO offers undeniable advantages for brokers and their clients. From providing access to top-tier health insurance for small businesses to simplifying administration and ensuring compliance, PEOs empower brokers to offer more value and build stronger, lasting client relationships.

If you’re ready to stand out in a crowded market, retain your clients, and grow your business, now is the time to explore a partnership with BBSI.

With a proven track record of success and a commitment to collaboration, BBSI is here to help you deliver exceptional results.

Contact your local BBSI representative today to become a partner and take your offerings to the next level.