OneSource Business Solutions Blog
As a small business owner, you may be wondering if you should offer health insurance to your employees. Benefits are a critical piece to an employee compensation package, and oftentimes, healthcare benefits are the icing on the cake. According to a recent survey by SHRM, 46% of adults said health insurance was the deciding factor or a positive influence in choosing their current job. And although per the Affordable Care Act, you’re not required to offer health benefits if you have less than 50 full-time employees, doing so can have some great advantages.
Pros of Offering Health Benefits
- Attract & retain top talent
- Avoid healthcare reform assessments
- Pre-tax benefits for employees
- Small business healthcare tax credit
- Healthier & more productive team members
- Healthy company culture
Despite knowing some of the benefits of offering healthcare benefits, deciding to actually do so is a big move for any business. You now may be asking yourself, “Where do I begin?”
How To Buy
When it comes down to it, there are a few options in accessing health insurance for your team:
- Buy it directly
- Buy it through a broker
- Access through a PEO
Buying Direct vs. Broker vs. PEO
Buying direct is the heaviest lift. You’ll have to do the research yourself and find a provider that can offer a plan that suits your business at an affordable rate. This option can be time consuming–and we know your time is valuable–and navigating insurance can be arduous. When purchasing through a broker, you’re outsourcing the task of finding a health insurance provider for your team, but other services are limited.
By accessing coverage through a PEO–professional employer organization–you’re benefiting from economies of scale. PEOs provide a more well-rounded benefits package and offer co-employees access to health coverage at rates that the large companies enjoy.
Differences In Health Insurance Broker & PEO
Using a broker or PEO to secure health benefits are good options if tackling this project on your own is more than you’re willing to handle. But let’s point out some differences.
What Does a Health Insurance Broker Do?
- An independent agent licensed and regulated by states
- Shops different providers and finds plans that fit your business
- Works on commission and gets payment from the insurance company for the people they enroll in the plan
- Doesn't generally provide other services outside of insurance.
What Does a PEO Do?
- Acts as a co-employer so businesses have access to a variety of plans
- Provides healthcare coverage through specific insurance providers
- Groups employees from multiple businesses to form a large group and therefore, offers competitive rates similar to a large company
- Manages the entire provider relationship
- Helps you plan for annual changes
- Offers other high-value services including human resources services, compliance support, payroll and more
Contact OneSource
As you can see, partnering with a PEO like OneSource Business Solutions, can not only help you secure an attractive and affordable healthcare plan for your team, but offer support in other areas of your business. Contact us today to learn more about co-employee health benefits we offer and complete benefits packages to attract and retain the best talent for your business.