New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince

Discussion in 'Employee Benefits Forum' started by yorkriver1, Apr 26, 2017.

  1. scagnt83
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    scagnt83 Well-Known Member

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    Bundled solutions can prevent crap like that happening. Or will pick up the cost of any mistakes. Self-Funding has come a long way over the past 5 or 6 years. I used to never give it a second thought.
     
  2. yorkriver1
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    yorkriver1 Well-Known Member

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    News!
    Another small group referral, with complications, small automotive shop. Not so likely to be an actual small group, 1st response from employer "I didn't know I had to contribute half the employee premium". The office manager mentioned the employer's tax pro thought maybe the employer might have a penalty for not offering insurance. There are 6 on payroll including owner. No comment from me so far to any of them about the fact of no employer penalty for group under 50.
    A new employee is interested in benefits, looking to see what we can do now.
    Office manager is mid 30's paying about $115/month on individual plan w/tax credit, buzzkill for group medical at this point. Just got census for the 4 EE's who might be on the group. 2 others of the 6 are on their spouse's group plans.
    I am thinking some arrangement to offer individual STM and ancillary products for now, and later offer individual major medical eff. 1/1/18 for the 3 not currently insured. Maybe ER would pay 50% of dental premiums now, and EE's could also get a variety of ancillary products as payroll deduction.
    If we get news that individual plan CSR & tax credits are reduced/removed for 2018, which seems unlikely, then I do have a group major medical carrier that is OK with no employer contrib, but does have participation requirements.
    Any further suggestions?
     
  3. junkman
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    junkman Well-Known Member

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    I'm thinking working the 50+ market is easier. At least you only have a few decision makers and selling it is worth you time. Look for groups with high rates and poor participation. Get a census with everyone and find out whether having those opting out will drive the rates down. Keep employer's total cost where it is now but drop the EE cost.
     
  4. yorkriver1
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    yorkriver1 Well-Known Member

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    Last sentence, meaning, the employer will pay the same $ amount as paid last year for their contribution on a new plan with lower total cost than last year, so that the remaining share for employee is lower than it was last year?
    The point being to attract more employees to enroll. Interesting. Increase employee loyalty/retention if they are on group insurance? Looking for the WIIFM for the employer.

    Question for current situation, not seeing much to do but offer STM to those not covered now, + some ancillary benefits until they can enroll individual for 1/1/18. Especially if they may get tax credit. They are kind of a textbook case of a small employer better off letting EE's get tax credits. Until that doesn't happen any more, anyway.
     
  5. Gulfman
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    Gulfman Well-Known Member

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    *Eventually you will have to get his CPA involved (if he's got any brains he has a CPA). If his CPA gives his stamp of approval, you got a chance. Otherwise, trying to convince a small-biz mechanic (who many times feels he can replace his workers with a Craigslist ad) will prove to be futile.

    HOWEVER, its a PERFECT opportunity to make contact with a CPA (maybe you can buddy up with the CPA and work some larger groups).
     
  6. yorkriver1
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    yorkriver1 Well-Known Member

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    Good point about CPA, who needs one tweak to their "pay or play" advice.

    I don't see the office manager getting any plus options over her current ACA plan with a tax credit, since 50% for her is bound to be more than $114 a month for any decent group plan, unless she's on a Bronze plan now. Worth a visit to discuss, get more details.

    Our BCBS allows offering up to 3 plans even on the smallest groups. Avoid penalty, could attract some. Also, if paid bi weekly or weekly, the premium under payroll deduction might be seen as workable. I have seen the idea of drop group and self pay on Marketplace collapse because employees aren't able to have the discipline to save up and pay their individual premium once a month.
     
  7. VolAgent
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    VolAgent Well-Known Member

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    I hope the Craigslist portion is a joke. If not, those mechanics need to move here. The dealerships are begging for anyone decent, there is great money and benefits just waiting on them.
     
  8. junkman
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    junkman Well-Known Member

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    @york: purpose is to take business from lazy agent. Method is to enroll everyone, add 125 plan if not already installed, review and repair 125 if it's in place and sell ancillary benefits. Include dental, didn't, cancer, citing, life etc just because people want them and you don't want other agents in your group. Be sure to do your homework and have better contracts than what's there or likely to be proposed.
     
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