Transforming Health Insurance for a Small Manufacturing Company in Cedar Springs, Michigan
- Small Business Benefits
- Nov 20, 2024
- 3 min read
Updated: Feb 21
Feeling stuck between offering health insurance and the cost to your business? Well worry no longer, we are helping Michigan companies reduce their health care costs for their business and their employees. Reducing health insurance expenses can significantly lower your overall business costs, freeing up funds for other essential areas like marketing, expansion, or improving your products and services.
Table of Contents
Client Overview
Business Type: Small manufacturing company specializing in custom metal parts
Location: Cedar Springs, Michigan
Employees: 35
The Challenge
A small manufacturing company found itself grappling with rapidly rising health insurance premiums, which had surged by 18% annually over the past three years. Despite investing heavily in coverage, employees remained dissatisfied due to high deductibles and restricted provider networks.
This created a dual challenge for the business. On one hand, the leadership struggled to maintain competitive benefits without jeopardizing financial sustainability. On the other hand, the dissatisfaction among employees contributed to retention issues, with workers leaving for employers offering stronger health insurance options. This combination of escalating costs and workforce turnover placed significant strain on the company’s operations and long-term stability.
The Solution to Transform Health Insurance
Small Business Benefits of Michigan tackled the company’s escalating health insurance challenges with a strategic, cost-effective approach that also empowered employees. The solution centered on restructuring the benefits plan to reduce costs while addressing employee needs.
The key components of this strategy included:
Tailored Coverage: The group health insurance plan was scaled back to cover only salaried managers, significantly lowering the company’s group insurance expenses.
Employee Choice: For the majority of employees, the team facilitated a transition to individual health plans available on the Federal Exchange. This allowed employees to choose plans tailored to their specific healthcare needs, giving them greater control and flexibility.
Subsidy Benefits: Many employees qualified for federal subsidies through the exchange, which drastically reduced their premium contributions and made the transition more affordable.
Personalized Support: To ensure a seamless process, expert consultants provided one-on-one guidance to help employees understand their options, compare plans, and select the most suitable coverage for their individual circumstances.
This targeted approach not only generated substantial cost savings for the company but also improved employee satisfaction by offering greater choice and access to affordable coverage. It provided a sustainable solution to an otherwise growing financial and retention challenge.
The Results
By implementing the new health insurance strategy, the company achieved significant operational and financial improvements:
Substantial Cost Savings: The business reduced health insurance expenses by over $200,000 annually, freeing up resources for other strategic initiatives and ensuring long-term financial sustainability.
Enhanced Employee Satisfaction: Employees expressed greater satisfaction with their new health plans, appreciating the flexibility to select coverage that aligned with their individual healthcare priorities and budgets.
Maximized Subsidy Benefits: A majority of employees qualified for substantial federal subsidies through the Federal Exchange, which significantly lowered their personal premium contributions while maintaining access to comprehensive coverage options.
Improved Retention Rates: Employee turnover decreased as workers valued the customized benefits package, boosting morale and fostering loyalty within the workforce.
This results-driven approach not only delivered immediate financial relief but also strengthened employee engagement and retention, positioning the company for sustained success. Are you ready to connect with one of our health representatives? Not sure? Hear what this client had to say:
Testimonial
“We never thought reducing our group plan would lead to happier employees and such dramatic savings. With Small Business Benefits of Michigan’s guidance, we saved over $200,000 and gave our team more choice and flexibility. It’s been a win-win for everyone.”
– CFO (actual name redacted for privacy*)
Conclusion
This Cedar Springs manufacturing company achieved remarkable savings and boosted employee satisfaction by rethinking their health insurance approach. With our innovative strategy, they successfully balanced cost control with employee well-being. Through our approach to transform health insurance for small businesses, our approach helps small businesses thrive.
Take the Next Step
Empower your employees while simplifying benefits management for your business. Don’t wait to achieve your business goals any longer! Contact Small Business Benefits at 616-425-9740 or visit sbbmi.com to see how we can customize a solution that works for your team. We’re here to help personalize health care for your employees and save your business money.
For additional resources, explore Healthcare.gov and our Small Business Benefits resource hub.
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