Case Study: Ximplifi

Ximplifi Logo
Industry Software/Technology
Location California
Website ximplifi.com/
Full-time U.S. employees  28

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When Ximplifi started to hire employees from multiple states across the U.S., they realized they needed a health benefit to recruit key talent. However, as a small remote company, traditional group health insurance was costly and challenging to implement across several states. To grow their company, Ximplifi knew they needed a flexible health benefit that could provide great coverage no matter where their employees live.

Ximplifi’s leadership team found PeopleKeep through an online search and began to investigate a qualified small employer HRA, or QSEHRA. With a QSEHRA, employees choose their own health plan, and employers reimburse them, tax-free, for eligible medical expenses and insurance premiums. Because of its simple administration and ability to support all their employees equally, Ximplifi knew they had found the right health benefits solution in QSEHRA and the right partner to help in PeopleKeep.

Since setting up the QSEHRA, Ximplifi has saved $67,000 compared to what they would have spent if they went with traditional group health insurance. The company has grown rapidly due to the attractive addition of the QSEHRA to the employee benefits package. PeopleKeep’s helpful customer experience and support teams, easy user interface, and rave reviews from employees have reinforced Ximplifi’s commitment to both the QSEHRA and PeopleKeep.

“The QSEHRA is great because it reduces the amount of work for the employer and puts the responsibility back on the employee. But it’s not a bad responsibility for employees to have, because now they can find an individual health insurance plan that best suits their needs.”

Sean Blunk

HR and Operations Support Manager

2

hours per month

$67,000

in total savings

Improved

compensation package

“As a remote company, trying to get group health insurance rates for multi-state employees was difficult and cumbersome.”

The company

Your business isn't your job; it’s your life! Old accounting and finance methods and outdated technology doesn’t cut it! Luckily, Ximplifi offers a better way. A boutique accounting firm with Big 4 experience, Ximplifi offers accounting software consulting and implementation and premium full-suite outsourced accounting services and CFO advisory.

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.

“From a leadership perspective, we liked the QSEHRA because it’s specific to small employers and provided welcomed tax breaks.”

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.

“Last year, we visited the Marketplace to compare other health benefit options, but our employees were adamant they wanted to stay with the QSEHRA. High employee satisfaction has kept us with PeopleKeep.”

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.

“One of the things I love about PeopleKeep is that it’s super low maintenance and the interface is incredibly easy to use.”

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.

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