Small Business Employee Benefit Plans Orange County
A case study of an Orange County small business that saved 58% on their group health insurance without reducing benefits.
In previous blogs, we have talked about saving small to medium sized businesses (2-300 employees) money on their group health insurance costs, and this week, we will review a recent example with some huge savings! Our case study is a development company in Orange County in Southern California with 49 employees. We’ll call them Company A and they have always offered a nice employee benefits package to their loyal staff. Company A has had an annual group health insurance cost of $716,129, which has been increasing steadily by double digits for the last 10 years.
Solana Insurance Services Employee Benefits was able to enroll Company A in a lower cost plan while maintaining the same benefits for the employees that they had enjoyed in the past. Now remember, as we have discussed in previous blogs, two different 10 year studies conducted by both Kaiser and Blue Cross of California (now Anthem Blue Cross) showed that on average, 50-70% of employees within any given group simply do not use their health insurance, or use it extremely little. 4-7 % of employees within any group typically exceed their max out of pocket, or use the plan chronically.