Can entrepreneurs band together to reduce health insurance costs?

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Some trade organizations may offer such an option for members.

Originally, when Professional Employer Organizations (employee leasing) became fashionable, the advantages of PEOs--for smaller companies generally--were the leverage of a larger group negotiating for reduced costs for benefits (e.g., group medical, dental, etc.); access to 401(k) retirement plans without the smaller single-employer cost burden; and, very often, lower workers compensation rates, as well.

Over time, these advantages diminished. Many benefits brokers can find very competitive rates for their small company clients, especially when all carriers can be accessed versus the usual only one-carrier option offered by PEOs.

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