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Benefits Unattractive to Employees

Who and when: CPA firm in Sacramento in 2013

Number of Employees: 35 with an average age of 34 years old

Problem: The firm was paying $500 per month towards the cost of employee-only coverage with a private exchange (CalChoice) and offered employer-paid life and LTD. Dental and vision were voluntary programs. Employees were complaining about the quality of benefits and employer contributions which was impacting the company’s ability to retain existing employees as well as attract new employees since they were growing at a rapid pace.

Resolution: Reviewed contribution modeling options for the company as well as a benefit offering analysis.  We decided to move them to a traditional percentage-based contribution for medical with some dependent contribution to avoid potential risk issues with ADA age-discrimination as they continued to grow. Added a $100 monthly benefit credit that could be spent towards a variety of options including additional income protection for employees located out of state. The net financial impact on the company was minimal.

“With PWA’s help, we’ve been able to attract and retain employees at a higher level due to the strength of our benefits package which is important for recruiting new employees. Plus the high level of service they provide to me and our employees allows me to focus on other areas to support the company’s growth.”

Covering Out of State Employees

Who and when: Property Management Firm in Sacramento

Number of Employees: 35 with an average age of 41

Problem: Escalating fully-insured premiums for the out of state employees were driving double-digit increases for the company, requiring them to continually revise the plan and increase employee contribution requirements. In addition, regional Kaiser and regional HMO enrollment traditional market options were not available nor cost-effective.
Resolution: We had previously had the employer under an HRA, so they were familiar with the concept of self-funding some of their benefit costs. Through in-depth market analysis, we ditched the fully-insured market and moved to a self-funded strategy in 2014. Over the past 5 years under the self-funded strategy, the company has received back more than $175,000 in premiums refunds over the 5-year period and continually outperformed the fully insured market

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