Small Employer Groups

Also known as mom-and-pop shops, small employer groups are one of my favorite types of businesses.  With regard to employee benefits, they feel as if the company cannot qualify for the same great benefits that a large employer would be able to offer, but that is not so.  There are many programs available to small employer groups such as Group Health, Life, Short-Term and Long-Term Disability, Dental and Vision as well as accidental supplemental plans.  We can custom build benefits for small groups that can beat or match the plans offered by the largest companies so they can compete, attract and maintain good key employees!

Small employer groups can implement employee benefits for zero cost and save tax dollars on premiums paid by the employees through a section 125 plan also known as a Cafeteria plan of which the insurance company will set up and manage for free as long as you offer the benefits to the employees voluntarily. It’s a win-win situation for small employer groups. Most insurance companies reduce the standard rate by close to 50% for voluntary group products which means you are able to pass substantial savings to your employees and also allow them pre-taxed premiums which saves them money as well.  I still to this day cannot figure out why more small employer groups are not taking advantage of the pre-taxed benefits of the voluntary market.

Once more, small employers also wish to offer great benefits when it comes to health insurance too, however, with the cost of health care consistently on the rise, it is extremely hard for the small business owner to compete because of the federal rules and state rules when it comes to offering health insurance to a group.  Most small employers are operating on a very tight budget and surprise increases can impact the bottom line substantially. 

Small employer groups have a great option with partially self-funded group plans of which can be issued down to a two-person group.  These types of plans are not subject to the ACA rules and are able to pass the savings directly to the small business and allow them to have a cap on the amount per employee they will pay with a defined contribution.  In most states the employer can do corporate carve-outs which allows the employer to choose what class of employee is eligible for benefits as another way to mitigate cost.  Partially Self-funded plans give the small employer an avenue of which to offer Fortune 500 benefits at very affordable rates and actually have a budget that will not increase unless they choose to increase the defined contribution from year to year, but it would ultimately be the employer’s decision. 

The number one reason for a small employer to offer benefits is to maintain employee retention and attract new talent!  Small employers need to ask themselves; how much do we spend training new employees every year and how long do they last?  It may be better to offer benefits and attract the best hard-working employees available, so that the employer does not have to keep hiring new people and having to spend time and money training them every day.  It is proven that when a company offers benefits, employee retention goes up and stays up!

Our online fulfillment center allows potential clients to shop and get quotes instantly, however, I would encourage small businesses to contact us during business hours to schedule a time to meet with one of our agents face to face, so that we can get to know what your goals are and customize a plan to meet every need desired. 

Consultations are absolutely free of charge.  We have virtual, phone, or in person appointment capabilities and will schedule meeting times when convenient for you!

Give us an opportunity to earn your business, I promise you will be happy you did!


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