Buying benefits directly from carriers (with or without a broker) gives you control over plan design and carrier selection. PEO benefits trade some of that control for pool pricing access.
| PEO benefits | Direct carrier | |
|---|---|---|
| Plan design control | Limited to PEO's plan menu | Full — design whatever you want |
| Carrier choice | PEO's carriers | Any licensed carrier |
| Pricing | Pool rates (favorable at small group) | Your own group's underwriting |
| Renewal predictability | Tied to PEO's pool | Tied to your group's claims |
PEO benefits win when: you're a small group facing high standalone quotes; you don't need specific carrier relationships; you value bundled simplicity.
Direct carrier wins when: you're large enough for favorable underwriting; you have specific carrier relationships; you want plan design control.
PEO benefits typically win for groups under 50 with average demographics. Direct purchase wins for larger groups or those with specific design needs.
PEO benefits win when: you're a small group facing high standalone quotes; you don't need specific carrier relationships; you value bundled simplicity.
Direct carrier wins when: you're large enough for favorable underwriting; you have specific carrier relationships; you want plan design control.
PEO benefits typically win for groups under 50 with average demographics. Direct purchase wins for larger groups or those with specific design needs.
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