Tired of Paying Sky-High Retail Health Premiums?
Our average clients go from $1,147 to $589/month on Tier-1 National PPO Health Coverage.
Built for self-employed professionals netting $100K+ and small business owners with W-2 employees. Most PEOs won’t touch small clients. We start at one person, for a flat $150/month, payroll, HR, IRS compliance, and workers’ comp included.
Cover yourself, your family, or your whole team. The calculator below runs your real numbers using 2026 IRS rules. Takes 2 minutes:
It's already April 2026. Here's what changed on January 1st:
Many high-earning solo operators and small business owners now pay $10,000 to $15,000+ per year for health coverage with after-tax dollars.
The enhanced ACA premium tax credits expired January 1st, 2026. [source: congress.gov]
This structure is called a Professional Employer Organization (PEO).
Important Section: Most people pay health premiums with after-tax dollars. At $100K+ net income, that costs you significantly more than the premium number suggests because you’re earning, paying tax, then paying the bill with what’s left.
How It Works
Through co-employment, your business joins a larger organization’s master contracts. Payroll tax filings run under their FEIN. Workers’ comp moves to pay-as-you-go with no deposits. Group health plans use composite rates so your age stops mattering. Your CPA still handles your entity. You still run the business. The PEO handles the payroll tax layer underneath it.
The Practical Difference
Traditional PEOs charge a percentage of payroll and typically require 50+ employees. This one starts at one person for a flat monthly fee.
Watch out for look-alikes.
Some platforms sell co-employment as a software subscription with health bolted on. Others are cooperatives where you get a W-2 from them, not your own business. In both cases your LLC or S-Corp becomes irrelevant to the arrangement. Here, your entity stays intact. The PEO runs underneath it, not instead of it.
Already earning $100K+ with an LLC or S-Corp?
Most co-employment platforms are built for beginners. If you are already running an established business at that income level, you do not need entity formation software or admin handholding. You need the tax structure and group benefit access that your income level justifies but the retail market will not give you. Run the calculator and see exactly what that looks like for your numbers.
Who This Is Built For
Single-member LLCs
You’re still a retail taxpayer. We convert you to corporate-level benefits and compliance.
Small Teams (2–25 W-2s)
Same math, scaled. The bigger the team, the bigger the cash-flow and retention wins.
What You Actually Get for Health Coverage
Current Situation (Buying on Your Own)
- Age-rated premiums (a 58-year-old pays 3× what a 28-year-old pays)
- Community-rated by zip code (expensive areas = expensive premiums)
- Small-group or individual market plans (narrow networks, high deductibles)
- After-tax dollars at $100K net income, every dollar of premium costs you roughly $1.30–$1.40 before it leaves your account
Through the PEO’s Large-Group Plan Options
- Composite-rated (pool pricing that is not driven by individual age or health)
- Master group contract (pooled with 150,000+ lives for actuarial stability)
- Tier-1 national carriers with broad PPO networks
- Pre-tax premium treatment under the co-employment structure
Check if your doctor is in the Cigna network before you apply – hcpdirectory.cigna.com
Real Example: You net $100,000 in 2026 and pay $700/month for health coverage.
As a single-member LLC: You must earn $1,147/month just to pay that $700 bill because premiums come out of after-tax income and SE tax takes its cut first.
- With USA Ops (Cigna National PPO + full compliance): Effective cost drops to $589/month equivalent.
- After the $150 flat fee: You come out $558/month ($6,696/year) ahead — and you never touch payroll, workers’ comp, or IRS filings again.
Already running an S-Corp at $150k? The same $700/month health spend still delivers $2,500–$3,000 net positive annually, while adding tier-1 group benefits, professional payroll infrastructure, and full IRS compliance.
You're leaving $6,696 on the table every year:
Choose your health coverage upgrade:
Lower My Health Costs
Solo / Self-Employed You’ll net $100k+ in 2026 and pay $700+/mo in health premiums.
You get:
- National Cigna PPO pre-tax coverage
- Thousands less in IRS taxes every year
- Full compliance, payroll, WC, and HR
Team Benefits with a Fixed Price
Business with 1–10 Employees Affordable group health without getting crushed on price.
You get:
- National Cigna PPO coverage for everyone
- Pre-tax benefits + payroll, HR, WC, and compliance in one fixed monthly fee
Compliance
Payroll
HR Dept.
SUTA
(EPLI)
PEO Pricing is Flat
$75–$150 per person per month.
$150/person/mo.
- Payroll processing, direct deposit, 941s, W-2s, and state filings
- Access to group health plans from tier-1 national carriers (composite rates)
- Workers’ comp on pay-as-you-go — zero upfront deposits, no year-end audits
- SUTA rate stabilization through the pool
- Direct HR support for compliance, terminations, and employee issues
- EPLI coverage
- IRS payroll tax filings under the PEO’s master FEIN
$75/person
- Health plan access not included at this tier: add $75/person to upgrade
- Payroll processing, direct deposit, 941s, W-2s, and state filings
- Workers’ comp on pay-as-you-go — zero upfront deposits, no year-end audits
- SUTA rate stabilization through the pool
- Direct HR support for compliance, terminations, and employee issues
- EPLI coverage
- IRS payroll tax filings under the PEO’s master FEIN
Add-ons you control:
We will tell you straight if the math does not deliver a clear net win for your income level and team size.
401(k) Retirement Plan - Optional
- Solo operators: $620/year
- Groups of 2+: $2,100 base + $120/person + 1% annual management fee
- Shelter up to $23,500 annually in employee contributions (vs. $7,000 IRA limit)
- plus up to $46,000 total with employer contributions (age restrictions)
- Or bring your own self-managed 401(k) no requirement to use ours.
Dental Coverage - Optional
- Single: $20/month
- Employee + Spouse: $42/month
- Employee + Children: $43/month
- Family: $68/month
Group Health Plan Pricing Options
Check if your doctor is in the Cigna network: hcpdirectory.cigna.com
The Math That Actually Matters
The FICA Leak: The Hidden Tax on "Retail" Insurance
The Question: I’m paying $1,100/month for health insurance. Why does it feel like more?
The Reality: On the ACA marketplace or individual plans, you pay premiums with after-tax dollars. You earn the income, pay federal income tax, then pay 7.65% FICA (Social Security + Medicare). Only what’s left funds the premium. The self-employed health insurance deduction reduces only income tax — it does nothing against the FICA hit.
The Math: A $1,100 monthly premium ($13,200/year) triggers roughly $1,010 in extra FICA tax just to pay the bill. Through the PEO structure, the premium is deducted pre-FICA via Section 125. You stop paying the IRS a fee on top of your insurance.
Solo Operators: Age-Based vs. Composite Rates
The Question: How much does a 52-year-old actually save?
The Reality: In the retail market, premiums are age-rated. A 52-year-old pays far more than a 28-year-old for the same coverage. After taxes, the true annual cost for a typical high-deductible plan often exceeds $14,000.
The PEO Pivot: Composite rating makes age irrelevant — everyone in the tier pays the same flat rate. The premium is deducted pre-tax (Section 125), so the effective cost drops significantly. You also gain a lower deductible and a national PPO network instead of a narrow HMO.
W-2 Teams: Plugging the Cash Flow Drain
The Reality: Small teams face a complexity tax — retail small-group rates, separate payroll fees, and large upfront workers’ comp deposits that tie up capital.
The PEO Pivot: Payroll, HR, and large-group health consolidate into a flat $150 per person infrastructure fee. Workers’ comp moves to true pay-as-you-go with zero upfront deposit and no year-end audit. A typical 3-person team often recovers $9,000+ in annual premium savings plus immediate working capital.
The Leverage Gap: Risk Pool Mechanics
The Question: Why are group rates so much cheaper?
The Reality: In the retail market you sit in a tiny risk pool. One large claim can spike everyone’s rates. You have no leverage.
The PEO Pivot: Your coverage joins a master pool with 150,000+ lives. A single high-cost claim has negligible impact on the overall rate. You access the same volume discounts and stability that Fortune 500 companies use.
Workers' Comp: Ending the "Interest-Free Loan"
Standalone carriers require you to guess next year’s payroll and pay a deposit (often 25% or more) upfront. That cash sits in their account for a full year. Then they audit you and bill any shortfall.
Through the PEO, workers’ comp is calculated on actual payroll in real time no deposit, no guesswork, no audit. Your cash stays in your operating account.
SUTA Stability: Shielding Your Payroll from Spikes
One unemployment claim can push your SUTA rate from 1.5% to 5% or higher, and that new rate applies to every dollar of payroll for up to three years. For a small team, that can mean a $6,000+ surprise tax bill.
In the PEO pooled structure, a single claim has virtually no measurable impact on your rate. You can hire and let go based on business needs, not tax-fear.
The 2026 ACA Cliff: Why Income is a Liability
The enhanced premium subsidies expired at the end of 2025. Cross the income threshold by even $1 and you lose 100% of the subsidy. A modest raise or good year can now cost $15,000+ in higher premiums. Repayment caps are also gone, so underestimating income triggers unlimited clawbacks.
In the PEO group plan, premiums are tied to the pool — not your personal income. You can earn well above the old thresholds without your health coverage cost changing.
Make More than $184,500? The best CPA's regularly miss this one...
High Income: Where S-Corp Math Actually Works (and Where It Doesn’t)
The Self-Employment Tax Cap Nobody Mentions
Self-employment tax is 15.3%. That number stops being useful above $184,500 in income.
The Social Security portion (12.4%) maxes out at that threshold. Once you cross it, only Medicare remains: 2.9% baseline plus 0.9% surtax above $200K (single) or $250K (married).
For a sole proprietor netting $400,000, the actual federal self-employment tax is roughly $35,000. A flat 15.3% would show $56,000. That $21,000 gap is not a rounding error—it’s the reason the S-Corp conversation changes at high incomes.
S-Corp Structure Above the Cap
An S-Corp splits income into W-2 salary and owner distributions. FICA applies only to wages. Distributions are tax-free on the payroll side.
Below $184,500 in W-2 wages, this saves you 15.3% on the distribution amount. Above it, Social Security savings disappear. You’re left with 2.9% Medicare plus the 0.9% surtax avoidance—material but not the full 15.3% advertised.
A business netting $1,000,000 does see real payroll tax savings from S-Corp structure. They’re just concentrated in the Medicare layers, not the full 15.3% that early calculators promise.
The PEO Advantage at High Income
Payroll tax savings plateau above the Social Security cap. What doesn’t plateau is access to large-group health pricing.
At $500,000+ income, the ACA subsidy cliff is irrelevant—you never qualified anyway. You’re paying full retail for individual or small-group coverage with after-tax dollars. Family coverage at $1,500/month costs roughly $30,000 in pre-tax income to fund an $18,000 premium. The gap is pure tax friction.
Inside a PEO, that coverage becomes a group plan at composite rates (age-neutral pricing) with pre-tax treatment through a Section 125 plan. FICA and income tax skip over the premium amount. At high marginal rates, that tax treatment is worth thousands annually.
The 401(k) ceiling ($23,500 employee deferral vs. $7,000 IRA limit) compounds the advantage. So does the operational infrastructure that removes compliance exposure from your personal balance sheet.
These benefits don’t decelerate with income. They’re structural and permanent.
The Real Math
Any calculator showing $50,000 in FICA savings at $700,000 income is applying 15.3% indefinitely. That number is wrong, and your CPA will say so.
The actual case for a PEO structure at high incomes is the combination: pre-tax group coverage at institutional pricing, higher retirement contribution limits, and the liability transfer. Not the payroll tax arbitrage alone.
The Simple Summary for High Earners:
Self-employment tax caps at $184,500 (Social Security stops, only Medicare remains). Above that income, S-Corp structure saves 2.9% Medicare tax, not the advertised 15.3%.
The real PEO win at high incomes isn’t payroll tax savings, it’s pre-tax group health coverage at institutional pricing, plus higher 401(k) limits. Those benefits don’t decelerate with income.
Run your actual numbers through the calculator.
Bottom Line Comparison
| Feature | Retail/Small-Group Market | USA OPS (PEO Structure) |
|---|---|---|
| Tax Treatment | After-Tax (FICA + Income Tax hit) | Potential tax-favored group treatment |
| Pricing | Age-Rated & Individual | Composite-Rated & Group |
| Network | Narrow HMO / Local | National Tier-1 PPO |
| Workers’ Comp | Upfront Deposits & Audits | Pay-As-You-Go ($0 Deposit) |
| Liability | You carry 100% of HR Compliance | Co-Employment Liability Shift |
| Cost Basis | Percentage of Payroll (traditional PEO model) | Flat $150/mo Infrastructure Fee |