How to Maximize the Small Business Quoting Process
UPDATE: Check out review on Texas employers cancelling employer plans so employees get exchange or obamacare plans with big subsidies
Today, any business can generate a quote easily. In fact, any broker can do it for you too.
But here's the real question...
Can you swiftly find the best value for you and your team without spending hours navigating a new market?
Probably not, but with over 25 years of experience, we can simplify the process for you.
Here are the essential steps for a successful benefits search that we'll guide you through:
- Initial plan and rate landscape survey
- Determining your monthly budget
- Mini cafeteria plan options
- Additional perks (with minimal cost)
- Integrated system for benefits and payroll (we've got it!)
This method is the most effective, and we can guide you through it to ensure a smooth experience.
Let's dive in!
The Initial Plan and Rate Landscape Survey
Once you provide your employees' zip codes and birthdates, we get to work immediately.
We start by taking a benchmark plan (usually the silver tier, the most popular) and run rates across various carriers.
Depending on your preference, we'll analyze HMO and PPO plans separately, as their pricing advantages can differ among carriers.
Typically, one carrier stands out in a particular area based on your demographics.
Even though plans are standardized, there can be significant price differences for a given group.
This is where our expertise is invaluable (our services as licensed Texas group health agents are free of charge).
Once we identify the most cost-effective carrier in your area, we'll move on to your budget.
Determining Your Monthly Budget
There are several flexible approaches you can take.
Generally, they include:
- A fixed dollar amount per employee (and dependents if covered)
- A fixed percentage towards employees (and dependents if covered)
- A fixed percentage towards a specific plan
The last option is usually the best.
An example is to pay 75% of the Silver plan for each employee.
Why is this the best choice?
It considers age-related pricing differences.
For instance, paying $100 per employee benefits a younger employee more than an older one.
This raises fairness issues.
Paying 75% of the cost addresses this concern.
Ultimately, we establish the percentage and plan based on your total monthly budget.
We assist you throughout this process, which is why we ask for your budget during the quote.
In essence, we've locked in your monthly budget!
Let's explore what this means for your employees.
Mini Cafeteria Plan Options
During enrollment, we create individualized worksheets for each employee.
These worksheets display multiple plan options and levels (including HMO, PPO, and HSA).
Each plan's price is based on 75% of the silver level.
This means a bronze plan will be cheaper and a gold plan more expensive, as the contribution is tied to the silver level.
The advantage is that employees have choices similar to those at larger companies (very important) while your budget is fixed to the silver level.
Employees can choose plans that fit their healthcare needs and budget.
Some employees will opt for the least expensive bronze plan, while others with higher healthcare costs might select a more comprehensive plan based on their price differences.
We can also structure this so that their share is pre-tax (we'll handle this for you).
A carrier might offer dozens of plans and various networks.
When we create the master quote for the employer, we select the best-priced options at each level to ensure maximum value.
Remember, carriers might not prioritize this, as we often see less value-oriented plans offered to companies directly.
We'll help you navigate the network choices as well.
We don't want to sound like infomercials, but...there's more!
Additional Perks (with Minimal Cost)
Besides the core medical plan, we can quote and offer dental, vision, life, and any additional coverage needed.
Dental can be budgeted similarly to medical, making it very affordable.
Interestingly, many employees value dental and vision highly as they see these as more immediately usable, even though medical insurance protects against larger expenses.
We can quote all major carriers, including VSP and Delta Dental, as well as embedded options with medical carriers.
Finally, let's make the entire process faster and easier for you, the employer.
An Integrated System for Benefits and Payroll (We've Got It!)
There has been a strong push in recent years to integrate benefits and payroll.
Some companies lead with this, but they are essentially payroll companies posing as benefits experts.
They often lack deep knowledge of plans and carriers to resolve issues (which inevitably occur).
Previously, you had to choose between an integrated package or expert guidance (free) from a knowledgeable broker.
Not anymore.
We have partnered with Rippling to provide an online system superior to what's currently available.
You can seamlessly integrate payroll, benefits, and more in one system, where the employee record is linked across all systems.
Make a change in benefits? It automatically transfers to payroll, and vice versa.
Onboarding and offboarding employees now takes minutes instead of hours, and you still receive the broker support and expertise.
Again, standalone companies are limited in maximizing health benefits strategically. That's not their specialty.
In fact, we can easily import key data directly from Gusto, Zenefits, and more to simplify the transition.
Okay...let's wrap up.
You can run your quote with the form above. We're happy to help with any questions at 800-320-6269 or at help@texasplans.com
Our assistance as Certified Texas Health agents is 100% free for you.
Happy Plan Shopping!