Case Study:

Compliant, Hourly Priced Benefit Plan Solution

AssuredPartners Government Contractor Solutions

Quick Facts

Type of Operation: Census / Call Center

Number of Employees: 750

Brokerage Services Provided: Employee Benefits & Service Contract Act Expertise

Valued Client Since: 2019

Problem

The client recently won a large contract to run a series of short term contracts for call centers to staff for the US Census. Like other call centers that deal with short-term high volume events (such as FEMA, Natural Disaster Relief, IRS, Student Loan, and Healthcare.gov), our contractor knew they would be staffing quickly and needed to deploy a Service Contract Act compliant health program quickly. The contractor had a health and welfare spend of roughly $4.50 per hour for benefits and chose to provide those dollars in benefits to their employees, while also saving the payroll burden associated with the alternative of paying the health and welfare benefit out in cash. The problem was where to find a compliant, hourly priced benefit plan, which could be set up fast?

Solution

AssuredPartners Government Contractor Solutions Team was able to obtain an hourly priced Aetna Medical plan with ancillary coverages (dental, life, disability) which perfectly matched the health and welfare fringe obligation the contractor had on the contract. Boon was able to quickly mobilize a team to travel to various call center locations to enroll and explain benefits to all employees.

Results

The contractor was able to become more profitable on the contract because they were able to offer a competitive benefit package in lieu of paying cash out to their short-term employees. Because the employees were enrolled and explained their benefit package at time of hire, fewer problems arose with communicating the benefits or the value of the benefits package. Due to the unique nature of the benefit package offered, benefits starting first of the month following coverage, so employees saw and felt the coverage early. Retention has also improved as benefits are not often extended to short-term employees. The process has since allowed the contractor to more competitively and aggressively bid on additional contracts knowing they have a easier to administer solution.