Integrated Employee Benefits System™
By integrating basic employer paid benefit programs with enhanced employee paid voluntary benefits, genuine employee satisfaction and appreciation can be achieved. Utilizing technology to its fullest, including web-enabled enrollment and information services, helps to maximize employee participation and delivers cost savings to both your business and your employees.
Plans include:
- Medical
- Dental
- Disability
- Life
- Long-term Care
- Cafeteria Plans/Section 125
- Group Universal and Variable Life*
- COBRA Administration
- Voluntary Payroll Deduction Benefits
Case Study:
Facts and Circumstances:
The client is a southern California manufacturing company. In the past five years, the company has grown from eleven to thirty-eight employees. Frustration heightened with the current plan for both the owner and employees - the owner was upset with the proposed 18.5% rate increases and the employees saw little value in the available plan options. Multiple meetings with the owner and Human Resource Manager indicated that no strategic planning for the corporation had been discussed or implemented.
Planning Strategy:
The first step included developing a strategic plan for the company by identifying long-term goals. After establishing long-term goals we developed a desired budget expense for all group benefits to the company/participants. The company retained Financial Diligence Partners to utilize our Integrated Employee Benefits SystemTM allowing us to gather the necessary data to prepare models and recommend an optimal plan design based upon the established budget and desired long-term goals of both owner and company.
Additionally, the current medical plan was not being utilized, a number of employees had expressed interest in tax-deductible childcare benefits, and the Human Resource Manager had been frustrated by COBRA compliance issues.
Results:
Utilizing our modeling software and given the budget and goal parameters, we were able to design several alternatives for the clients consideration. The following final results and changes were implemented:
- A high deductible medical plan with an employer sponsored health reimbursement account.
- A flexible spending account with a Section 125 cafeteria plan. In addition, six employees signed up for the $5,000/month dependent care benefit.
- Outsourced the COBRA compliance resulting in a net cost savings to the company.
- A voluntary benefit plan with seventeen of the thirty-eight employees participating.
With a long term strategic plan in place as well as all the aforementioned added benefits, the total increase in cost to the company was less than 3 percent. Additionally, employee morale saw a significant boost ultimately leading to eight new hires this year - all of which were referred by existing employees.
* Variable Life offered through Lincoln Financial Securities.
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