Bad Ass Benefit Package for Small Employers

Are you looking for a bad ass benefit package for your employees? Don’t want to go through all the pain of figuring it all out? Well, here’s an example of a great benefit package for small employers. Feel free to use this plan as-is or use it as a jumping-off point when thinking about your own company benefit package.

Estimated Company Cost

It’ll cost about $300/employee monthly. Your mileage may vary as rates for medical plans vary on the age of the enrollees and geographic region of the company. This example uses an employee at age 45 and a company in Sacramento. Those with younger employees will likely see lower costs while those with older employees will see higher costs. You can also fix the amount as well. Ask me for details about that option.

Requirements

Group Size: All employer health plans require there to  be at least 1 W-2 employee that is not the spouse of the owner (children are okay.) This particular configuration requires there be at least 5 W-2 employees, although with one tweak to the ancillary benefits, can be extended down to 1 W-2 employee as well.

Participation: At least 65% of the employees must be either enrolling in the plan or waiving because they have group coverage through another employer (such as through a spouse or a parent.)

Location: All the Health Plans shown are only available for companies with a California domicile. The HMO plans are only available in certain regions of California.

Employer Classification: The ancillary benefit package excludes certain SIC codes from eligibility. You may have to consider alternate dental/vision/life plans depending on your classification.

All other underwriting requirements from the carriers must be met.

The Benefits Loadout

Medical Plans

Blue Shield Plans

Silver Trio HMO 1750/55
Gold Trio HMO 500/35
Silver Full PPO 1700/55
Gold Full PPO 0/20

Dental Plan

Delta Dental PPO

$1500 Annual Max
Orthodontic Coverage

Vision Plan

VSP Choice

$10 Exam Copay
$25 Glasses Copay
$150 Frame allowance

Life Plan

Unum Life

$20k Group Life

Contributions

For this example, the employer pays for 70% of the premium costs, and the employee pays for 30% of their premiums and 100% of premiums for dependents via payroll deductions.

Why Consider This Package?

The medical plan gives robust options for your employees while remaining relatively affordable for both the employer and the employee. The Silver Trio HMO has good benefits for those that are relatively healthy. The costs are kept low due to the relatively small network. On the Trio plans, members would have access to Hill Physicians and Mercy Medical Group providers in Sacramento.

For those who have more complicated health conditions, the Gold Trio is still an affordable option that will give stronger coverage. And those looking for a larger network, the Blue Shield Full PPO plans are king, giving access to U.C. Davis, Sutter Health, Mercy Medical Group and Hill Physicians and the ability to see specialists without a referral from a PCP.

The Dental, Vision and Group Life Plan are bundled, which results in a lower premium cost. The downside is that an employee would not be able to elect the ancillary benefits individually. However, at the cost of about $17 per month and split between two pay checks, the plans are still a good deal even if they don’t end up using one of the plans. The group life plan is a nice gesture to give to your employees to show that you’d like to make sure that their loved ones are hit with the burden of funeral expenses should something happen to them.

Setting up the Plans

Interested in setting up this benefit package and don’t know where to start? Download my one-page guide that will walk you through the process. Links are included for all of the forms you’ll need! Alternatively, you can contact me for a one-on-one consultation.

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