Title: Staying Compliant with Group Medical Plans Is Hard — But a PEO Can Make It Easier
Managing compliance for a group medical plan can feel like chasing a moving target. Between federal mandates, state-specific regulations, and constant updates to healthcare laws — like the recently introduced Big Beautiful Bill — employers are often left scrambling to keep up. For many businesses, especially small to mid-sized ones, the stakes are high: penalties, lawsuits, and employee dissatisfaction can result from even unintentional missteps.
But there’s a better way to handle it: partner with a Professional Employer Organization (PEO).
The Compliance Challenge
Group health plans are governed by a web of complex regulations, including:
The Affordable Care Act (ACA)
ERISA (Employee Retirement Income Security Act)
COBRA
HIPAA
State-specific healthcare mandates
And now, evolving legislation like the Big Beautiful Bill
Each law carries its own set of requirements. From reporting obligations to plan design rules, documentation requirements, and employee communication, it’s a full-time job just to stay informed — let alone implement the changes correctly.
The Big Beautiful Bill, for example, has already introduced sweeping updates around eligibility tracking, mental health parity standards, and mandatory plan disclosures. While well-intentioned, laws like this add even more layers of responsibility to HR teams already juggling payroll, hiring, and internal policies.
Why Compliance Mistakes Happen
Compliance issues rarely stem from neglect. They usually come down to:
Lack of in-house expertise
Difficulty interpreting legal jargon
Not catching updates in time
Inconsistent plan administration
When one small mistake could result in fines or employee claims, the risk of going it alone is just too high.
How a PEO Helps You Stay Compliant
Partnering with a PEO shifts the burden. A PEO becomes a co-employer, giving you access to their HR infrastructure, legal team, and benefits expertise. Here’s how they help:
✅ Ongoing Legal Monitoring – PEOs stay on top of every new law and regulation, including complex legislation like the Big Beautiful Bill. You don’t have to read legal bulletins — they do it for you.
✅ Built-in Compliance Support – They manage COBRA, HIPAA, ACA reporting, and more, ensuring your business meets every requirement.
✅ Benefits Administration – From eligibility tracking to employee onboarding, the PEO handles the compliance-heavy side of managing your group medical plan.
✅ Risk Mitigation – With legal and HR experts in your corner, your risk of non-compliance drops significantly.
✅ Scalable Support – Whether you have 5 employees or 500, a PEO adapts to your size and complexity.
Healthcare compliance isn’t just a box to check — it’s a legal necessity and a major component of employee trust. Laws like the Big Beautiful Bill will continue to change the landscape. If you’re tired of trying to keep up on your own, a PEO might be the smartest move you make this year.
Need help navigating the chaos?
Let us show you how a PEO can take the compliance pressure off your plate — so you can focus on growing your business instead. Give us a call at 321-441-9056 or email us at Sales@BACbenefits.com.