2 Important Benefits of Utilizing a Broker of Record (BOR) and a PEO for Health Insurance Administration

In the ever-evolving landscape of business, small and medium-sized businesses (SMBs) are constantly seeking innovative solutions to streamline their operations and enhance employee benefits.

One such powerful solution is the Professional Employer Organization (PEO), which offers a comprehensive suite of HR services.

However, navigating the complexities of health insurance administration can be a daunting task for businesses.

This is where the role of a Broker of Record (BOR) comes into play.

In this article, we will explore the two significant benefits that SMBs can leverage by employing a BOR through a PEO, to administer health insurance for a client that is on their master health insurance plan.

Benefit 1: Expertise and Guidance in a Complex Landscape

The world of health insurance is marked by intricate regulations, evolving compliance standards, and a multitude of plan options.

For small and medium-sized businesses without dedicated in-house experts, understanding the nuances of health insurance can be overwhelming.

This is where a Broker of Record proves invaluable.

When a business utilizes a BOR through a PEO, the PEO acts with permission on behalf of the business to handle any part of the benefits administration for the business.

For example, when a business is using an open market health care solution (i.e. not on the PEO’s master policy) that business can still get the administrative relief it is looking for by assigning the BOR to the PEO.

Benefit 2: Streamlined Administration and Enhanced Efficiency

One of the primary reasons businesses opt for PEOs is to offload the administrative burden associated with HR functions.

However, navigating the intricacies of health insurance administration without the help of a PEO and the use of a BOR can still pose challenges.

This is where a BOR steps in, facilitating a seamless and efficient process.

By entrusting a BOR with the responsibility of health insurance administration to a PEO, businesses can streamline their operations and focus on their core competencies.

When a PEO becomes a Broker Of Record for a client, the BOR acts as a liaison between the PEO, the insurance carriers, and the business, handling paperwork, resolving claims issues, and ensuring that all aspects of health insurance administration are managed with precision.

This not only reduces the administrative workload on the business but also enhances overall efficiency, allowing teams to dedicate more time and resources to strategic initiatives and business growth.

In the dynamic landscape of small and medium-sized businesses, the strategic utilization of resources is highly important.

Leveraging the expertise of a Broker of Record for health insurance administration through a PEO is a smart business decision that can yield significant benefits.

It is important to note that a company has the right to choose who the BOR is, which can be either a broker, or a PEO and if you are getting pushback about this, or your current PEO does not want to do this for your business, please contact me either by email at [email protected] or calling me at my office number (405) 832-6634, or on my cell phone (405) 868-7347.

From expert guidance and cost optimization to streamlined administration and enhanced efficiency, the advantages of employing a BOR are multifaceted.

As businesses strive to navigate the complexities of HR services and employee benefits the PEO emerges as a trusted ally, paving the way for success in an increasingly competitive marketplace, when a BOR is utilized.