February 16, 2021
Our goal at BenefitElect is to make benefits administration and employee data management simple and to give companies back their time and resources.
We bring the expertise, processes, systems, and services that help companies achieve 100% ACA compliance, improve their bottom line, and increase employee participation and retention.
The following case study yielded impressive results and illustrates how a partnership with BenefitElect can make your company more successful.
ABC Staffing specializes in high-tech staffing and typically has a weekly payroll of 600 temporary workers. Most temporary staff are well compensated and work an average of four weeks each month on assignment.
Because ABC Staffing was unaware of legal requirement changes from the Affordable Care Act (ACA), the IRS assessed penalties of $20,000 in 2015 and $30,000 in 2016. ABC Staffing had also been inconsistently offering a MEC benefit plan averaging 6% participation, resulting in an average annual health plan surplus of less than $15,000.
When BenefitElect began working with ABC Staffing, clear goals and benchmarks were set to ensure mutual expectations. These goals were to demonstrate 100% ACA compliance, streamline ACA administration, and attract and retain top talent.
ABC Staffing required a weekly medical plan and offered multiple pre-tax insurance benefits. All candidates were automatically matched to the MEC-Plus plan.
During onboarding, candidates logged in to the BenefitElect enrollment website to confirm coverage. Concurrently, they were given the opportunity to purchase additional coverage, including buying up to the MVP plan, or to waive coverage. BenefitElect’s online enrollment system included a series of engaging communications and videos to educate employees about their benefits options. At the conclusion of the onboarding process, each candidate received an email and a text message confirming an offer of coverage. Through this process, BenefitElect was able to guarantee that 100% of ABC Staffing’s employees had received offers of coverage.
On a weekly basis, BenefitElect’s enrollment system exchanged records with both the payroll system and the insurance company to verify that all employee data, coverage, and deductions were accurate and current. Break-in-service rules, built into the enrollment system, made for easy reactivation of coverage. Before any action was taken, temporary workers received automated email and text message reminders to keep them up to date on their eligibility and enrollment status.
After just one year of working with BenefitElect, ABC Staffing experienced incredible results.
All benefits deductions were managed electronically with zero errors. Benefits coverage for any terminated temporary workers was cancelled, and 92% of temporary workers who auto enrolled retained medical coverage. ABC Staffing’s annual surplus increased from $15,000 to $320,000, improving profitability, and they were able to take advantage of the Work Opportunity Tax Credit for the first time.
Overall, BenefitElect helped ABC Staffing exceed its original goals: they achieved 100% ACA compliance, and ACA administration was streamlined. In addition, ABC Staffing saw an 89% increase in employee retention, which paved the way for company growth and long-term sustainability.