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Old 02-07-2014, 04:12 PM
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Default Health insurance through a PEO

I'm hoping someone can help me with general information about getting health insurance through a PEO (Professional Employment Organization).

1) Do the rates for medical coverage offered to client companies take into account the specific experience and demographics of the client company? For example, would a company get lower rates if their population is healthier or younger than other populations? Or are the same rates offered to all employers in the same region?

2) Is the PEO itself a self-funded entity that pools the experience of all employers? Or does the PEO simply negotiate for fully insured plans and pass on the cost to the client companies?

Any information would be appreciated. I searched online and wasn't able to come up with much information.
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