Title: PEO Evaluation for Employee Benefits
Source: https://ethosbenefits.com/services/peo-evaluation
Publisher: Ethos Benefits
Summary: Ethos Benefits helps employers decide whether to join, stay in or leave a PEO for benefits by comparing the full cost and control against a plan of your own.

1.  [Home](https://ethosbenefits.com/)
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3.  PEO evaluation.

# PEO evaluation. Joining, staying or leaving.

A professional employer organization can bundle health benefits with payroll and HR, but the bundle can hide what the benefits cost and who controls them. Ethos Benefits compares your PEO's benefits with a plan of your own, line by line, so your company can decide whether to join, stay or leave, and plans the move if you decide to change.

[Request a Strategic Analysis](https://ethosbenefits.com/strategic-analysis)

## What you get.

PEO benefits are usually priced inside an administrative fee that is hard to separate. As a company grows, the bundle that made sense at 50 employees may not at 200.

1.  **Cost breakdown** What the PEO charges for benefits separated from what it charges for payroll, HR and administration.
2.  **Market comparison** A plan of your own priced in the market for the same workforce and coverage.
3.  **Plan design and employee impact** Coverage and contributions compared, so you know how a change would land with employees.
4.  **Control and data** Who sponsors the plan, who controls its design and who owns its data, inside and outside the PEO.
5.  **Transition plan** Timing, contract notice, plan setup, COBRA and communications if you decide to leave.

## Who sponsors _the plan._

Inside a PEO, the PEO usually sponsors the health plan and your employees are covered as part of its larger group. That can bring buying power. It also means your company may not control the plan’s design, its vendors or its data.

## What we _compare._

| Inside the PEO | A plan of your own |
| --- | --- |
| Benefits priced inside the PEO fee | Benefits priced and contracted directly |
| Plan design set by the PEO | Plan design set by your committee |
| Data held by the PEO | Data owned by your company |
| HR and payroll bundled | HR and payroll chosen separately |

The answer depends on your size, workforce and priorities. The evaluation puts the numbers in front of your leadership so the decision is made on evidence.

## Part of your Fiduciary Framework™.

Every Ethos service reports to your benefits committee. The work is reviewed at your quarterly committee meeting, each decision is recorded with the reasoning behind it, and the record lives in your Ethos Fiduciary OS. That is what lets your committee show the plan was run prudently.

[See the Fiduciary Framework™](https://ethosbenefits.com/fiduciary-framework) · [How fiduciary governance works](https://ethosbenefits.com/services/fiduciary-governance)

## Related reading.

-   [**Self funded vs. fully insured** Benefits 101: Self-funded vs. fully insured health plans, plus level funding and reference-based pricing, compared on risk, cash flow, data, state law and filings.](https://ethosbenefits.com/benefits-101/self-funded-vs-fully-insured)
-   [**Employee benefits administration** Benefits 101: What employee benefits administration covers, from enrollment, eligibility and 834 files to payroll, invoices, life events, COBRA and ACA tracking.](https://ethosbenefits.com/benefits-101/employee-benefits-administration)
-   [**Who is subject to ERISA?** Benefits 101: Private employers' health plans fall under ERISA. See which plans are exempt, including government, church and some voluntary plans, and what the rest must do.](https://ethosbenefits.com/benefits-101/who-is-subject-to-erisa)

[Browse everything in Learn](https://ethosbenefits.com/learn)

## Questions employers ask about this.

Is a PEO ever the right choice for benefits?

Sometimes, especially for smaller companies that value the bundled HR and payroll services. The evaluation shows the trade-off in numbers for your company.

Who sponsors the health plan in a PEO?

Usually the PEO. That typically means the PEO controls plan design, vendor choice and plan data, and your company follows its rules.

How long does leaving a PEO take?

It depends on the PEO contract’s notice requirements and your renewal date. Planning usually starts several months ahead so a new plan is ready on the day coverage changes.

## Keep reading Related to this page.

-   [**Benefits strategy** Ethos Benefits builds a three to five year strategy for your health and welfare plans: goals, plan design, vendor direction and targets your committee tracks. _Read more_](https://ethosbenefits.com/services/benefits-strategy)
-   [**Renewals and marketing** Ethos Benefits starts your health plan renewal at least six months early, markets it to carriers and vendors, and puts every option in front of your committee. _Read more_](https://ethosbenefits.com/services/renewals)
-   [**Claims analytics** Your company owns its health plan data. Ethos Benefits connects your claims and pharmacy data to analytics and reviews it with you every month. _Read more_](https://ethosbenefits.com/services/claims-analytics)
-   [**Cost containment** Ethos Benefits evaluates and contracts cost containment for your plan: reference-based pricing, direct contracts, direct primary care and pharmacy programs. _Read more_](https://ethosbenefits.com/services/cost-containment)
-   [**Mergers and acquisitions** Ethos Benefits reviews employee benefits and health plan risk in mergers and acquisitions, and plans the integration so employees keep coverage on day one. _Read more_](https://ethosbenefits.com/services/mergers-and-acquisitions)
-   [**Global benefits** Ethos Benefits helps U.S. employers with employees abroad review international benefits, compare them with local practice and govern them with the U.S. plan. _Read more_](https://ethosbenefits.com/services/global-benefits)

## See what your plan is really costing you.

A Strategic Analysis starts with your plan documents and your broker agreement, then shows you what your plan costs, where the risk sits, and what a committee would decide with the full picture.

[Request a Strategic Analysis](https://ethosbenefits.com/strategic-analysis) [Call (407) 803-4710](tel:+14078034710)