When their PEO provider hit them with a renewal increase much higher than they forecasted, a national nonprofit knew they had to act fast. The sudden hike amounted to over $113,000 in additional annual expenses, threatening to divert crucial funds from their mission. By partnering with PairPEO, a PEO broker, to explore the market, they found a new PEO that offered a much better rate, leading to significant savings.
Client Profile
After a long relationship with their original PEO, this nonprofit was suddenly faced with a significant increase in medical insurance premiums for 2026 (an extra $113,406 in annual costs). The significant, unexpected hike put immediate pressure on their budget and threatened to divert resources from their mission. The organization needed a better solution to control costs, protect its benefits, and ensure long-term stability.
To address these concerns, PairPEO guided the organization through a full market RFP, ultimately transitioning them to a new PEO. This move delivered immediate and substantial financial relief.
By switching to a new PEO, the nonprofit lowered its 2026 costs by $85,000 compared to 2025, and saved nearly $200,000 versus what staying with its incumbent PEO would have cost at renewal.
By switching to a new PEO, the nonprofit didn’t just dodge a $113,406 rate hike, they slashed their benefits spending by $85,000 compared to the previous year. This resulted in a total savings of nearly $200,000 versus their original PEO’s renewal offer.
As part of the move, PairPEO also negotiated a cap on its 2027 medical increase, limiting it to a maximum of 15%. This ensures that even in 2027, their PEO costs will remain lower than what they were paying in 2025. The staff kept their strong benefits, and the organization gained a reliable cost-containment strategy for the future.
If you’re facing a tough PEO renewal, PairPEO can help you assess your options and unlock savings, all while safeguarding your team’s experience. Schedule a review to see what’s possible for your organization.
