“Without the cost savings we get with this option, we wouldn't be able to offer a health benefit.”
Statebridge had offered group health insurance plans for the past 10 years, but it wasn’t sustainable any longer. Annual rate hikes led them to switch carriers almost every year just to keep costs in check. There was frustration amongst the entire company whenever there was yet another change in benefits.
However, cost wasn’t the only motivator to make the switch. Realizing that their diverse employees needed more plan options to choose from, Samson wanted something that would allow employees to pick the coverage that was best for them, whether that be a bronze-level high deductible plan or a platinum-level plan.
“It is certainly a big shift in mindset for companies of our size to realize that this is a valid option and it ultimately will work better for us.”
As an ALE, Statebridge needed to find a benefit that complied with the ACA’s employer mandate. Since the ICHRA complies as long as it’s offered to full-time employees and the allowance is considered affordable, the next step was designing their plan to meet those requirements. Using PeopleKeep’s ICHRA decision tool, Statebridge easily compared different allowance scenarios based on the cost of health insurance for their employees. Based on their budget and employee needs, they decided to offer an allowance that would fully cover a silver-level plan on the marketplace.
After deciding on allowance amounts, the next step was making sure their employees got the help they needed to purchase their health insurance plans. As a diverse workforce, Statebridge employees ran the gamut of healthcare needs. This was a big reason for the shift away from one-size-fits-all group health insurance, but shopping for health insurance is notoriously difficult. Many of their employees had never purchased an individual insurance policy before, so trying to navigate through that process alone wasn’t an option.
Statebridge employees worked with brokers to help them shop for a health insurance policy that worked best for their individual needs. They were able to get the answers they needed, find a plan that worked for them, and it took the stress and confusion out of searching for health insurance on their own.
Statebridge is currently seeing 72% participation in their ICHRA, an increase of 20% over their previous group health insurance plans. The majority of employees that opted out were either on their spouse’s group health insurance plan, were participating in a health care sharing ministry, or chose to go without coverage. While Samson and Bill are happy with current participation, they want to see it increase next year.
Even with increased participation over their group health insurance plan, they’ve been able to save $10,000 a month. While this money is currently being funneled back into the company to help fund their operations, they’re hoping that next year’s expected increased participation will mean they won’t have as much savings to report.
Their ICHRA benefit has been added into Statebridge’s job descriptions to help out with their hiring efforts and, with the added stability the ICHRA provides to their current employees, increase employee retention
“I find the reimbursement process in the software very easy - it works great!”
As Statebridge’s benefit administrator, Bill finds the reimbursement process extremely easy. He enters the software about once a week to check the status of pending expenses and submit payments all in a few minutes. Creating and terminating users, making updates to employment statuses, and checking on scheduled payouts can be done in a few clicks of a button.
Statebridge was founded on the principle that the combination of technology, deep industry experience, custom borrower touch, and a contrarian view of servicing makes a significant difference in the performance of mortgage portfolios.
Statebridge was formed by a team that helped create the market for independent surveillance of mortgage backed securities — an undertaking that requires an investor’s perspective, a new outlook on servicing and a macro view of the markets.
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