Best PEO Services for Health Insurance in 2025

As a business owner or HR leader, you’re likely aware of the critical role that health insurance plays in attracting and retaining top talent. However, navigating the complexities of health insurance can be daunting, especially for small to medium-sized businesses. That’s where Professional Employer Organizations (PEOs) come in, offering a streamlined solution for providing comprehensive health insurance and other HR services without exhausting your resources.

I’ve spent months researching and evaluating the top PEO services, specifically from a health insurance perspective. My aim is to help you find a PEO partner that simplifies health insurance administration and aligns with your company’s growth trajectory, budget constraints, and specific requirements.

This article will summarize the 6 best PEO services for health insurance in 2024. It will provide detailed comparisons of each provider’s key features, pricing structures, and ideal use cases. We’ll explore PEOs that excel in providing comprehensive health insurance options, those offering the most competitive pricing for budget-conscious businesses, and others that provide advanced features like benefits administration and compliance management.

Pro Tip: When evaluating PEO services, don’t just focus on health insurance options and pricing. Please pay close attention to the provider’s industry expertise and track record in managing benefits. A great PEO for tech startups might not be the best choice if you’re in the manufacturing sector. Always align the PEO’s strengths with your company’s needs and workforce demographics.

By the end of this guide, you’ll clearly understand which PEO services are best suited for providing health insurance to businesses at various stages and with different priorities. Let’s dive in and find the perfect PEO partner to enhance your health insurance offerings in 2024 and beyond.

Best PEOs for Health Insurance at a Glance

Before we jump into the detailed reviews, here’s a quick summary comparing the key features and information for the top PEO services:

This summary table gives you a quick overview of how these PEO services compare in terms of essential features and pricing. Now, let’s dive into more detailed reviews of each provider.

Overview of the 6 Best PEO Services for Health Insurance

1. Deel: Best for fast-growing companies

Deel has quickly become one of the most popular PEO services, especially among fast-growing tech companies and startups. It offers a user-friendly platform for managing global teams, including comprehensive health insurance options and other benefits.

Deel is best for businesses that are scaling quickly and must provide competitive health insurance benefits to attract and retain top talent globally. Its modern interface and quick onboarding process make it ideal for companies that want to move fast without getting bogged down in administrative complexities.

Key Features

• Global payroll in 120+ currencies
• Flexible health insurance options
• Customizable benefits packages
• Time off management
• Expense reimbursements
• Built-in time tracking
• Visa and immigration support
• API for seamless integration

Deel Pricing Plans

Deel offers transparent, flat-rate pricing:

• EOR services: From $599 per employee per month
• Contractor management: From $49 per contractor per month
• Global Payroll: From $49 per employee per month
• Custom pricing available for larger teams

Best for: Deel is an excellent choice for fast-growing companies that need to provide competitive health insurance benefits quickly and efficiently across multiple countries. Its user-friendly platform and flexible options make it ideal for businesses prioritizing speed and ease of use.

2. Multiplier: Best for customer-centric businesses

Multiplier has gained traction in the PEO space by offering a customer-centric approach to global employment services, including health insurance administration. They provide coverage in 150+ countries, with a focus on creating a seamless experience for both employers and employees.

This PEO is best suited for businesses that prioritize excellent customer service and want a hands-on approach to managing their health insurance and other benefits. Multiplier’s emphasis on providing personalized support makes it a good fit for companies that value a strong partnership with their PEO provider.

Key Features

• Global payroll in 100+ currencies
• Standard health insurance packages
• Benefits administration
• Compliance management
• Time off tracking
• Expense management
• Basic API for integrations
• Mobile app for employees

Multiplier Pricing Plans

Multiplier offers competitive, transparent pricing:

• EOR services: Starting from $400 per employee per month
• Contractor management: Starting from $40 per contractor per month
• Global Payroll: Starting from $20 per employee per month
• Custom pricing available for larger teams or specific requirements

Best for: Multiplier is a strong choice for businesses that value excellent customer service and a straightforward approach to providing health insurance benefits. Its competitive pricing and user-friendly platform make it attractive for companies looking to offer solid benefits without a steep learning curve.

3. Rippling: Best for tech-savvy companies

Rippling stands out in the PEO space by offering a comprehensive, highly automated platform that goes beyond just health insurance and HR management. It combines PEO services with broader IT and finance management tools, making it a one-stop shop for many business operations.

This solution is ideal for tech-savvy companies that want to automate as much of their HR and operations processes as possible, including health insurance administration. Rippling’s extensive integration capabilities and customization options appeal to businesses with complex workflows and a desire for deep data insights.

Key Features

• Global payroll and PEO services in 185+ countries
• Comprehensive health insurance options
• Automated onboarding and benefits enrollment
• Device management and app provisioning
• Time and attendance tracking
• Extensive third-party integrations (500+)
• Custom report builder
• Advanced analytics and insights

Rippling Pricing Plans

Rippling’s pricing is modular and customizable based on the specific services you need. You’ll need to contact their sales team for a custom quote, as pricing can vary widely depending on your requirements.

Best for: Rippling is an excellent choice for tech-focused companies that want to automate and streamline their health insurance administration alongside other HR, IT, and finance operations. Its powerful automation capabilities and extensive integrations make it stand out, though it may be more than some businesses need for basic PEO services.

4. Oyster HR: Best for global workforce management

Oyster HR has quickly established itself as a major player in the PEO space, offering a comprehensive platform for hiring and managing distributed teams, including robust health insurance options. It stands out for its wide coverage (180+ countries) and focus on providing a great experience for both employers and employees.

This PEO is ideal for businesses that need to manage a truly global workforce and want to offer competitive health insurance benefits across multiple countries. Oyster’s strong compliance features and detailed country-specific information make it easier to navigate the complexities of international benefits administration.

Key Features

• Global payroll in 120+ currencies
• Customizable health insurance options
• Comprehensive benefits administration
• Time off and expense management
• Visa and work permit support
• Detailed country-specific hiring guides
• Advanced reporting and analytics

Oyster HR Pricing Plans

Oyster offers tiered pricing based on the number of employees:

• EOR services: $599 per employee per month
• Contractor management: From $29 per contractor per month
• Global Payroll: $25 per employee per month
• Scale plan: custom pricing for large enterprises

Best for: Oyster HR is an excellent choice for businesses managing a truly global workforce and needing to provide comprehensive health insurance benefits across multiple countries. Its wide coverage and strong compliance features make it well-suited for companies with ambitious international expansion plans.

5. Papaya Global: Best for regulatory-heavy businesses

Papaya Global has established itself as a leader in the PEO space, particularly for companies operating in highly regulated industries or across multiple jurisdictions. It offers a comprehensive platform for managing global workforces, with a strong focus on compliance and risk management.

This PEO is particularly well-suited for businesses that need to navigate complex regulatory environments while providing robust health insurance options to their employees. Papaya Global’s focus on compliance and its advanced analytics capabilities make it a top choice for companies in sectors like finance, healthcare, or those with operations in multiple countries.

Key Features

• Global payroll in 100+ currencies
• AI-powered compliance engine
• Extensive benefits administration, including health insurance
• Time and attendance management
• Expense reimbursement
• Immigration and relocation support
• Advanced workforce analytics
• Equity management support

Papaya Global Pricing Plans

Papaya Global offers customized pricing based on your specific needs:

• PEO services: Starting from $599 per employee per month
• Contractor management: Starting from $25 per contractor per month
• Global Payroll: Starting from $20 per employee per month
• Custom pricing available for larger organizations or those with specific requirements

Best for: Papaya Global is an excellent choice for businesses that need robust compliance support and advanced analytics capabilities alongside comprehensive health insurance options. Its global expertise and customizable packages make it well-suited for companies with complex, multi-national operations.

6. ADP: Best for businesses of all sizes

ADP is one of the most established names in HR and payroll services, and their PEO offering, ADP TotalSource, brings this expertise to businesses of all sizes. With a long history of providing comprehensive HR solutions, ADP offers robust health insurance options as part of its PEO services.

This PEO is well-suited for a wide range of businesses, from small startups to large enterprises, that want to leverage ADP’s extensive experience and resources. ADP’s scalable solutions make it a good fit for companies that anticipate significant growth and want a PEO that can grow with them.

Key Features

• Comprehensive health insurance options
• Wide range of additional benefits (dental, vision, life insurance, etc.)
• Payroll processing and tax management
• HR compliance support
• Talent management tools
• Risk management services
• Employee self-service portal
• Extensive reporting and analytics

ADP Pricing Plans

ADP offers custom pricing based on your specific needs and the size of your organization. You’ll need to contact their sales team for a detailed quote.

Best for: ADP is a solid choice for businesses of all sizes that want a comprehensive, scalable PEO solution with robust health insurance options. Its extensive experience and wide range of services make it well-suited for companies looking for a one-stop shop for all their HR and benefits needs.

Understanding PEO for Health Insurance

Before diving deeper into choosing the right PEO for your health insurance needs, it’s important to understand how PEO health insurance works and its benefits.

What Is a PEO?

A Professional Employer Organization (PEO) operates as a co-employer with your business, sharing responsibilities for your team. This arrangement often involves the PEO taking over HR functions such as payroll processing, benefits administration, workers’ compensation, and compliance with laws like the Affordable Care Act (ACA).

How PEO for Health Insurance Works?

A PEO acts as a co-employer to employees from various businesses, which gives them the leverage to negotiate cost-effective, high-quality health insurance plans. This means you can offer a better benefits package to your team. Through a PEO, your business gets access to insurance plans typically available to larger companies, which are often more attractive to employees.

This pooling method can lead to lower premiums and expanded plan options. Offering PEO health insurance can give you an opportunity to increase retention and enhance onboarding within your business. Because the PEO is the employer of record for insurance providers, they are responsible for compliance with the ACA and detailed administrative services, freeing you up to focus on growth and other operational needs.

Benefits of PEO Health Insurance

• Cost Savings: Employers who partner with PEOs often see significant cost reductions on health insurance premiums. The collective bargaining power of a PEO can result in savings of up to 30% compared to individual market rates.
• Access to Better Plans: PEOs can offer a wider range of health insurance plans, including options that are typically only available to large corporations. This can include comprehensive medical coverage, dental and vision plans, and even additional wellness programs.
• Reduced Administrative Burden: PEOs handle the complex tasks of benefits administration, including enrollment, claims processing, and regulatory compliance. This frees up your time and resources to focus on core business activities.
• Improved Compliance: PEOs stay up-to-date with changing healthcare regulations, including the Affordable Care Act (ACA). They ensure your business remains compliant, reducing the risk of penalties or legal issues.
• Enhanced Employee Satisfaction: Offering competitive health insurance through a PEO can significantly boost employee satisfaction and retention. It demonstrates your commitment to employee well-being and can be a powerful tool for attracting top talent.
• Scalability: As your business grows, a PEO can easily scale your health insurance and other benefits to accommodate your expanding workforce, without the need for you to renegotiate plans or change providers.

How to Choose the Right PEO for Health Insurance?

Selecting the right PEO for your health insurance needs is a crucial decision that can impact both your business operations and employee satisfaction. Here are key factors to consider:

1. Evaluate Your Needs

Before starting your search, clearly define what you need from a PEO:

• What specific health insurance options do you want to offer?
• Do you need additional services like payroll processing or compliance management?
• What is your budget for health insurance and PEO services?
• How many employees do you need to cover, and in which locations?

2. Check Accreditation

Look for PEOs that are accredited by reputable organizations. The three main accrediting bodies for PEOs are:

• Employer Services Assurance Corporation (ESAC)
• IRS Certified Professional Employer Organization (CPEO) Program
• Certification Institute (CI)

Accreditation ensures that the PEO meets high standards of financial stability, ethical business practices, and regulatory compliance.

3. Compare Health Insurance Offerings

Examine the health insurance plans offered by each PEO:

• Range of plan options (HMOs, PPOs, HDHPs)
• Network of healthcare providers
• Coverage levels and deductibles
• Additional benefits like dental, vision, and wellness programs
• Flexibility to customize plans for your workforce

4. Assess Cost Structure

Understand how each PEO prices its services:

• Per-employee pricing vs. percentage of payroll
• Any setup or administrative fees
• Potential volume discounts
• Transparency in pricing and billing

5. Evaluate Technology and User Experience

In today’s digital age, the technology platform of a PEO is crucial:

• User-friendly interfaces for both employers and employees
• Mobile accessibility
• Integration capabilities with your existing systems
• Self-service options for employees

6. Consider Customer Support

Quality customer support can make a significant difference:

• Availability of support (24/7, business hours only)
• Dedicated account manager vs. general support team
• Response times and issue resolution processes
• Training and onboarding support

7. Review Compliance Capabilities

Ensure the PEO can handle compliance issues related to health insurance:

• ACA compliance management
• HIPAA compliance
• State-specific insurance regulations
• Ongoing compliance monitoring and updates

8. Check References and Reviews

Don’t hesitate to ask for references from businesses similar to yours. Also, check online reviews and testimonials to get a sense of other clients’ experiences.

Common Challenges with PEOs for Health Insurance

While PEOs offer many benefits, it’s important to be aware of potential challenges:

1. Loss of Control

Some businesses feel they lose a degree of control over their health insurance decisions when working with a PEO. It’s important to choose a PEO that allows for customization and flexibility in plan selection.

2. Employee Perception

Employees might be confused about the co-employment relationship. Clear communication about the PEO arrangement and its benefits is crucial.

3. Transition Difficulties

Switching to a PEO can involve a learning curve for both management and employees. Look for PEOs that offer comprehensive onboarding and training support.

4. Long-Term Commitment

Many PEOs require long-term contracts. Ensure you’re comfortable with the commitment and understand any cancellation terms.

5. Cost Fluctuations

While PEOs can often provide cost savings, health insurance premiums can still fluctuate. Be prepared for potential changes in costs over time.

Maximizing the Benefits of Your PEO for Health Insurance

Once you’ve chosen a PEO, here are some tips to maximize the benefits:

• Educate Your Employees: Ensure your team understands the health insurance options available to them and how to use them effectively.
• Regularly Review Your Plans: Work with your PEO to regularly assess your health insurance offerings and make adjustments as needed.
• Leverage Wellness Programs: Many PEOs offer wellness programs as part of their health insurance packages. Encourage employee participation to promote better health and potentially lower insurance costs.
• Stay Informed: Keep up-to-date with changes in healthcare laws and how they might affect your PEO arrangement.
• Utilize Data and Analytics: Many PEOs offer analytics tools. Use these to gain insights into your health insurance usage and costs, and make data-driven decisions.

Conclusion

Choosing the right PEO for your health insurance needs can significantly impact your business’s ability to attract and retain top talent, manage costs, and navigate the complex world of healthcare benefits. Whether you opt for the regulatory expertise of Papaya Global, the user-friendly approach of Deel, or the comprehensive offerings of ADP, the key is to align your choice with your specific business needs and goals.

The best PEO for your company is one that not only provides excellent health insurance options but also aligns with your company culture, growth plans, and operational needs. Take the time to thoroughly evaluate your options, considering factors like cost, coverage, technology, support, and compliance capabilities.

As you move forward, keep in mind that the world of health insurance and PEO services is always evolving. Stay informed about industry trends and be prepared to reassess your PEO partnership periodically to ensure it continues to meet your needs.