Key Takeaway: Businesses that work with a PEO broker and remain open to switching providers when it makes sense consistently see greater cost savings and improved benefits compared to those who stick with the same PEO out of habit.
When it comes to managing employee benefits, most businesses face a common challenge: rising costs. But what if we told you there’s a way to save millions while offering better benefits to your team? This is the story of one business that did just that, with the help of a (cue superhero music) PEO broker.
The Starting Point: A $3000 Deductible Plan and 25 Employees
Back in 2019, this business was like many others. They had 25 employees and had a $3000 deductible medical plan. While this plan was standard, it came with a hefty price tag and the looming threat of annual premium increases of 10% or more.
That’s when they decided to partner with a PEO broker.
The Change: Switching to a $500 Deductible Plan
This is where a PEO broker can make a real impact. By switching to a different PEO, they secured a $500 deductible plan that offered better employee coverage while significantly lowering costs. This marked the beginning of a transformation in the company’s approach to employee benefits.
The Results: $1.2M Saved Over Six Years
Fast forward to 2026, and the results speak for themselves:
- Employee Growth: The business grew from 25 to 175 employees.
- Cost Savings: They saved over $1.2M in medical premiums while maintaining a $500 deductible plan.
- Minimal Increases: Over six years, the total increase in plan costs was just 5%! A stark contrast to the industry standard of 10%+ annually.
These outcomes were only possible because the business worked with a PEO broker and was willing to switch PEOs when necessary. This proactive approach ensured they continued to get the best value for their investment.
Why Switching PEOs & Renegotiating Matters
Many businesses fall into the trap of “setting and forgetting” their PEO. While this might seem convenient, it often leads to missed opportunities for savings and better benefits.
For example, if this business had stayed with their initial PEO:
- They would have saved only $540k over six years.
- Their total plan costs would have increased by over 100%.
By switching PEOs, they unlocked an additional $660k in savings and kept their cost increases to a minimum.
What This Means for Your Business
This real-world example highlights the power of working with a PEO broker. Here’s what you can take away:
- Significant Savings: A PEO broker can help you find the best plans and negotiate better rates.
- Better Benefits: Offer your employees plans with lower deductibles and better coverage.
- Long-Term Stability: Avoid the steep annual increases that most businesses face.
Ready to Transform Your Employee Benefits?
If you’re tired of rising costs and want to explore how a PEO broker can help your business save and grow, we’re here to help. At PairPEO, we specialize in finding the right PEO for your unique needs and ensuring you get the best value over time.
Contact us today to learn more and start your journey to better benefits and bigger savings.
