A small or medium-sized company has minimal negotiation power when it comes to acquiring insurance. The cost of health and dental insurance is generally too much for en employer to offer their employees. But, a large company gets reduced rates and other benefits and perks. Benefits are highly important to employees, so to attract top talent in any field, a company must be competitive. A PEO puts your employees on their payroll and those employees then become part of a much larger entity, one that has clout with big insurance companies and other providers.