Case Study
Learn how we helped a small business in Round Rock, TX save more than $53,000 per year in health insurance.
The Challenge
Presidio Custom Metal Works was facing an 18% increase in their United Healthcare (UHC) group plan.
Costs were already high, with the owner paying more than 50% of premiums per employee. With the increase, most of the employees and Presidio would each have to pay over $585/month. These costs were prohibitive, with just 6 employees choosing the plan (not including the owner). Total costs to the owner (including 100% of premiums for one employee) came to over $60,000/year. Like most small businesses, Presidio lacked a traditional retirement savings plan, given high costs and substantial administrative burdens of implementing a 401(k) or 403(b).
After receiving his free benefits opportunity analysis, the owner discovered his employees were eligible for nearly more than $50,000/year in premium tax credits (PTCs). He invited W3 to help his employees find affordable individual health plans that utilized their tax credits and to provide them with refundable supplemental insurance which would double as employee retirement savings accounts.
Our Recommendation
Based on his business, our team recommended a simple "wage up" plan involving health stipends and refundable insurance.
Given the employees' ages, marital status, # of dependents, and incomes, we knew that taking full advantage of PTCs would produce the most optimal outcome. As an employer with fewer than 50 full-time employees, the owner was in a unique position to benefit from available subsidies while still providing robust benefits that fit the operational budget.
We answered questions as they arose and worked with the office administrator to coordinate plan implementation. In just three days, we had all previously covered employees on their new plans. Over the following week, we were able to get four more employees covered at affordable rates.
The Results
The owner was able to reduce the cost of providing health insurance by more than $37,000 per year, while his employees saved more $16,000 per year.
Partnering with HealthMarkets, W3 achieved a 100% satisfaction rate with all employees that opted-in for health insurance. Employees on the original group plan found individual plans they were happier with, while four additional employees that had waived the original plan were able to obtain affordable health insurance. Through Globe Life Family Heritage, W3 provided refundable supplemental insurance plans for all 17 employees that will pay for out-of-pocket costs while helping them save more than $640,000 for retirement.
Not only did the employees on the original UHC plan find new affordable health plans, but their plans were substantially improved. Most employees found plans with deductibles under $1,500; some were able to lower their deductibles to $0; and most gained dental, vision, hearing (DVH). What's more, all originally covered employees paid LESS than they were paying on the original plan.
Going forward, the owner will be able to avoid $585/month for new employees seeking health insurance (the average rate for employees covered through HealthMarkets is $240/month, with zero cost to the employer). Using a portion of his savings, the owner added employer-sponsored supplemental insurance to all 17 employees, which doubled as employee savings. Even after adding refundable supplemental insurance for all employees, the owner is still saving more than $25,000 per year compared to the original group plan.
Our Process
1) You tell us about your business
2) We send you a free benefits analysis
3) We set up your plan
4) We enroll employees
Who We Serve
Employers (<50)
Employers (50-99)
Employees