Customer case study: Ximplifi

The challenge

When Ximplifi began hiring employees in 2020, having a health benefit in place quickly became a top priority. Ximplifi’s primary goal in offering a health benefit was to compete in the tough job market by recruiting top talent and retaining good employees. But being fully remote, they immediately faced challenges. 

Ximplifi first went the traditional route of looking into group health insurance on their own. But finding reasonable group rates for multi-state employees was complex and time-consuming, and ultimately they didn’t qualify for the low rates that larger companies were being offered. 

Also, Ximplifi’s team was turning out to be quite diverse. They were hiring many younger employees who were still on their parents’ health insurance, so they needed a benefit that gave those employees enough value. As they continued investigating, Ximplify also realized their perfect health benefit should meet their current employees’ needs while also being able to grow with their company as they expand.

The solution

Through online research, Ximplifi found the QSEHRA: a tax-free health benefit for small employers with fewer than 50 full-time equivalent employees. With a QSEHRA, employers reimburse employees for their individual health insurance premiums and other qualified out-of-pocket medical expenses.

With the QSEHRA employers can set a budget-friendly monthly allowance of their choice with no minimum contribution requirements—only a maximum contribution limit. Allowance contributions are tax-deductible and free of payroll taxes for employers. 

Another feature the QSEHRA allows, and PeopleKeep’s platform supports, is employer-sponsored premium reimbursement (ESPR). ESPR allows Ximplifi’s employees on their spouse’s employer-sponsored group health insurance plan to be reimbursed for their spouse's insurance premiums on a taxable basis. 

In addition, with ESPR enabled, employees who are still on their parents’ insurance, like so many Ximplifi employees, can be reimbursed for their own qualifying out-of-pocket expenses. As a business that provides software consulting services, Ximplifi knew they wanted a robust but easy benefits administration solution to help them administer the QSEHRA.

Given these features, the QSEHRA’s flexibility for their diverse range of employees, and PeopleKeep’s knowledgeable sales team, Ximplifi decided to sign up with their QSEHRA. 

The QSEHRA met Ximplifi’s needs by being flexible and customizable enough for all their employees no matter where they live. Employees could choose the specific individual health policy that worked for them and use their allowance to pay for their premiums and other medical expenses. 

The employees’ ability to choose what they wanted to have reimbursed was immediately a big hit for Ximplifi’s staff. According to leadership, giving their employees control over their own healthcare decisions was the best part of all.

The results

With the implementation of the QSEHRA, Ximplifi has seen remarkable results. They have saved $67,000 in health benefits costs since 2020 and plan to invest the savings into alternative employee benefits, such as other health and wellness perks. 

Employees and new hires enjoy the benefit so much that Ximplifi increased their allowance amount so that employees can cover even more qualified expenses. Because the employees love the flexibility to choose their own health plan and medical care, Ximplifi plans to continue to renew their QSEHRA year after year.

Even though she joined Ximiplifi after the QSEHRA was put in place, HR and Operations Support Manager, Sean Blunk, quickly became a fan of the benefit. She loves how she can highlight the benefit within their compensation package to attract candidates. Because Ximplifi is a small company, the QSEHRA has become a valuable incentive to add to their base compensation and compete against larger companies. 

As an administrator, Sean finds the intuitive software dashboard perfect for fast benefit administration. It only takes her ten minutes to add and remove employees in the system, and she spends less than two hours a month scheduling reimbursements.

With PeopleKeep’s online chat feature, she can get help within a few minutes, and the customer experience team is available for quick assistance with any account-related issues. 

Management aside, the continued praise from their remote employees keeps Ximplifi and Sean pleased with the overall success they’ve seen with PeopleKeep and the QSEHRA benefit. The ability to offer a health benefit to employees in multiple states without hassle is an advantage that has proven Ximplifi to be a great place to work for remote employees in today’s job market.