“Extinction” is a word no one wants to hear – especially not business owners worried about employee benefits packages. However, health insurance costs continue to rise. The average family premium has increased 24% since 2019 and 52% since 2014. If you’re one of the thousands of small businesses in the US, your budget can’t take a surprise rate hike or issue with cost-control.

This is what makes a Master Plan from your professional employer organization (PEO) essential.

What are the benefits of a PEO Master Plan?

PEO Master Plans are a strategic approach that enables businesses like yours to offer robust benefits without the hefty costs or administrative burden typically associated with such offerings.

By entering into a co-employment relationship with a PEO, you gain access to the benefits packages that the PEO negotiates with providers at scale. This arrangement allows small-to-medium sized businesses to access the high-profile benefits packages that they would otherwise not be able to offer employees.

As our Chief Benefits Officer Dan Thompson explained, “VensureHR partners with national insurance carriers with broad networks of physicians and hospitals nationwide.”

Thompson spoke to the scale of the VensureHR team’s depth and breadth of support.

“VensureHR has a full team nationwide dedicated to the administration and compliance associated with Master Plans,” he said. “This team serves thousands of employers throughout the US.”

Why PEO Master Plans Are Here to Stay

Those negotiation capabilities are what Thompson said will keep Master Plans around for companies using PEOs.

“As your company grows, its ability to negotiate in the open market also changes. VensureHR has its own full-service brokerage that is capable of shopping competitive health plans on the open market to conduct an analysis of Master Plans vs open market.”

Additionally, as businesses increasingly recognize the value of attracting and retaining top talent through comprehensive benefits, the demand for scalable solutions only widens.

Advantages of PEO Master Plans

• Cost Efficiency: When utilizing a PEO Master Plan, businesses benefit from economies of scale. This collective buying power enables securing better rates on health insurance and other benefits, making it financially viable even for smaller businesses.
• Comprehensive Offerings: Master Plans often include a wide range of benefits – from healthcare and retirement plans to wellness programs and ancillary benefits like dental and vision coverage. This breadth ensures that you can meet diverse employee needs, enhancing job satisfaction and retention.
• Attract the Best Talent: Small businesses can still attract top-tier talent with PEOs. Robust benefits plans can catch the attention of potential employees, even if your business isn’t a Fortune 500.
• Administrative Relief: Master Plans help reduce administrative overhead. Managing benefits can be complex and time-consuming, but a PEO handles the bulk of this work, allowing you to focus on growing your business.
• Compliance Support: Staying compliant with the myriad of employment laws and regulations is no small feat. PEOs provide expert guidance ensuring that your benefits offerings align with current legal standards to mitigate risk.

What if You’re Not Ready for a Master Plan?

Master Plans aren’t a fit for every business. Some companies aren’t even ready to consider the traditional marketplace, let alone larger-scale benefits. Thompson said companies not ready for Master Plans should ask their PEO about low-cost options like dental, vision, and life.

Planning for a Brighter Business Future

Afraid of extinction? At VensureHR, we understand the weight HR, benefits and compliance administration can put on small businesses. We’re dedicated to helping you overcome them.

PEO Master Plans are just one example of how we can streamline your operations and create a more robust framework for your employees’ benefits.

Benefits with VensureHR include:

• MEC plans
• MVP plans
• Telemedicine
• Behavioral health/mental health
• Genome & DNA testing
• Direct care
• Advance funding options
• & more.

Connect with our PEO experts to learn more!