We’re often asked to ‘bid’ on small group health plans. First question; what’s your current annualized cost per covered employee? More often than not, the employer/prospect doesn’t know. (Do you?)

Absent some anomaly of demographics or risk, if it’s more than $15,013 *, I’m eager to ‘suit up!’

This week it was Dave, a Home Builder, requesting we quote his group of eight. Without a current plan design or rates, we assumed this was a ‘virgin’ group; i.e., one of the roughly 42% of small businesses that don’t currently offer coverage.

Subsequent to reviewing the spreadsheet of options presented, it became apparent we were in fact competing against a high deductible HSA Plan available to Dave’s employees through one of their Trade Association Union Plans.

But Dave makes no contribution to their premiums. (And wonders why he’s struggling to attract and retain staff!)

FYI: when offering a Group Health Plan, employers are required to contribute at minimum, 50% of the single premium.

But to win Dale’s business, my spreadsheet apparently had to show a number lower than $ 0.

After 40 + years of doing this, I thought I had seen everything! 

* Source: Mercer Annual Employer Survey HERE.