Case Study: How a 45-Employee Company Saved $150,000 Per Year by Leaving a PEO and Moving to a Level-Funded Health Plan

The Challenge: Rising Healthcare Costs Inside a PEO

A growing company with approximately 45 employees came to The BRIC Agency looking for answers. Like many small and mid-sized businesses, they were enrolled in a large Professional Employer Organization (PEO) and assumed they were receiving competitive employee benefits and pricing.

However, after several years of premium increases, leadership began questioning whether the PEO model was still the best fit for their organization.

Their concerns included:

• Rising healthcare costs year after year
• Limited transparency into insurance pricing
• Lack of flexibility in plan design
• Difficulty understanding alternative funding options
• A desire to improve employee benefits without increasing costs

The company wanted an independent review of their benefits strategy to determine if better options existed outside of the PEO environment.

Our Solution: A Level-Funded Health Plan Strategy

The BRIC Agency conducted a comprehensive benefits analysis, comparing the client’s existing PEO healthcare program against alternative funding arrangements available in the marketplace.

After reviewing claims history, demographics, and employee needs, we recommended transitioning the company to a level-funded health plan.

Level-funded plans combine many of the advantages of self-funded insurance with the predictability of a fully insured monthly payment. For many employers with 20 to 500 employees, they can provide:

• Lower overall healthcare costs
• Greater transparency
• Improved plan flexibility
• Potential surplus refunds
• Access to robust provider networks
• Enhanced reporting and analytics

The Results

The outcome exceeded expectations.

Annual Savings: $150,000

By moving from the PEO to a level-funded health plan, the company reduced its annual healthcare spend by approximately $150,000 per year.

Improved Employee Benefits

The new program delivered stronger benefits than the previous PEO offering, including enhancements to employee coverage and overall plan value.

Greater Control

The employer gained direct ownership of its benefits strategy rather than relying on a one-size-fits-all PEO solution.

Long-Term Cost Management

The level-funded arrangement positioned the company for better long-term healthcare cost control through improved transparency and claims visibility.

Why Many Employers Are Re-Evaluating Their PEO Health Insurance

PEOs can provide value for certain businesses, particularly startups and very small employers. However, as organizations grow, many discover that they may be paying more than necessary for employee benefits.

Common reasons employers explore alternatives include:

• Escalating healthcare costs
• Limited plan customization
• Lack of transparency
• Inability to access level-funded or self-funded options
• Desire for a more strategic benefits consultant

Employers with 20 to 500 employees are often surprised to learn how many alternative funding solutions are available today.

Is a Level-Funded Health Plan Right for Your Company?

Every organization is different. The best solution depends on factors such as employee demographics, claims experience, budget objectives, and recruiting goals.

However, businesses that have traditionally relied on a PEO should periodically review their options to ensure they are receiving the best value for their healthcare investment.

In this case, a simple benefits review uncovered an opportunity to improve coverage while reducing costs by six figures annually.

How The BRIC Agency Helps Employers Reduce Healthcare Costs

The BRIC Agency works with employers throughout Pennsylvania and beyond to evaluate:

• Fully insured health plans
• Level-funded health plans
• Self-funded health plans
• Alternative funding arrangements
• Prescription drug strategies
• GLP-1 coverage solutions
• Compliance and HR support

Our goal is simple: help employers maximize the value of every dollar spent on employee benefits.

Schedule a Complimentary Benefits Review

If your organization has 20 to 500 employees and you’re wondering whether you’re overpaying for health insurance, The BRIC Agency can provide a no-cost review of your current benefits program.

You may discover opportunities to reduce costs, improve benefits, and gain greater control over your healthcare strategy—just like this 45-employee company that saved $150,000 annually.