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Broker Consultant Support
 

Broker Consultant Support

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    Broker Consultant Support Broker Consultant Support Presentation Transcript

    • Presentation for: Broker or Consultant
    • Our Market - Government Contractors connect connect with Boon to obtain more effective programs The Boon Group’s clients are private companies performing contracts issued by a government agency (federal, state, or local). We do not market benefit plans to government employees, instead we market plans to private employers performing a government contract. Companies performing federal, state, or city contracts are typically required to pay their hourly employees according to a “prevailing wage” or a local “wage determination”. These contracts set minimum pay rates employers must pay as well as the required Health & Welfare (H&W) Fringe Rate. The H&W Fringe Rate is an hourly dollar amount earmarked by the government to provide employer sponsored benefits for all employees working on the contract. The company performing the federal, state, or city contract must either allocate the H&W Fringe towards the cost of employee benefits or in lieu of benefits provide the H&W Fringe in the employee’s paycheck as extra cash payroll. Most companies performing the government contract prefer to allocate the H&W Fringe towards employee benefits as health benefits are pre-tax as opposed to cash payroll which is subject to payroll taxes. For example federal service contracts currently mandate a $3.35 per hour H&W Fringe Rate. Contractors paying that $3.35 H&W in the form of pre-tax health benefits instead of as cash payroll save thousands of dollars in reduced taxes. The savings factor is detailed on slide 4. Products are marketed through The Boon Insurance Agency, Inc., and Third Party Administrative Services are provided by Contractors Employee Benefits Administration, Inc. (CEBA®), wholly owned subsidiaries of The Boon Group, Inc.
    • Our Market (Continued) connect The following types of companies often perform connect with Boon to obtain more effective government contracts. These are great industries for The Boon Group’s products and services:  Facility maintenance companies  Staffing firms programs  Security guard companies  Janitorial companies  Language translation & interpretation companies  Non profit organizations with jobs programs for the disabled  Construction Companies  Mechanical engineering companies  Environmental services companies Products are marketed through The Boon Insurance Agency, Inc., and Third Party Administrative Services are provided by Contractors Employee Benefits Administration, Inc. (CEBA®), wholly owned subsidiaries of The Boon Group, Inc.
    • Advantages of The Boon Group’s Tailored Benefit Plans connect Annual Costs connect with Boon to obtain more effective programs Companies performing government contracts tie their employee benefit budgets to the H&W Fringe Rate. The H&W Fringe Rate is typically increased annually, however there is no guarantee by how much. Federal, state, and city governments tend to increase the H&W Fringe amount by 3% per year, far below the double digit trend of traditional medical plans. As a result government contractors should look to implement non traditional benefit plans with lower annual increases. This way the contractor can be confident in the costs of benefits over the multi year life of the government contract. The Per Hour Paid Budget Contractors face a challenge funding a benefit program with a “per hour” H&W Rate, as hours worked by employees tend to fluctuate from month to month. As a result traditional medical plans with stable monthly premiums are not a good fit. Instead contractors are better off with a tailored benefit plan with premium tied to a “per hour” budget. Affordability Employees working on government contracts tend to be modestly paid hourly workers. The high costs of family coverage in traditional medical plans discourages them from covering dependants. As a result contractors should look to implement tailored benefit programs with affordable dependant coverage. Products are marketed through The Boon Insurance Agency, Inc., and Third Party Administrative Services are provided by Contractors Employee Benefits Administration, Inc. (CEBA®), wholly owned subsidiaries of The Boon Group, Inc.
    • The Savings Factor connect connect with Boon to obtain more effective programs The following slide details how contractors save money by paying the H&W Fringe rate in the form of benefits rather then as cash payroll. The savings are generated by decreasing total taxable payroll. Keep in mind the employer must pay taxes and worker’s compensation premiums on each payroll dollar. Consequently after the taxes are considered, a payroll dollar actually costs the employer approximately $1.17 in total cost ($1 in payroll plus $0.17 in taxes and workers compensation premiums). Employer provided benefits are pre-tax costs. So a dollar spent to provide health coverage is not taxed, and therefore only costs the employer $1.00. Government contracts give the employer the option of allocating the hourly H&W Fringe Rate either towards the cost of benefits or extra cash payroll. As a result employers providing the H&W Fringe Rate in the form of non taxable benefits' are at a competitive advantage. Products are marketed through The Boon Insurance Agency, Inc., and Third Party Administrative Services are provided by Contractors Employee Benefits Administration, Inc. (CEBA®), wholly owned subsidiaries of The Boon Group, Inc.
    • Cost Savings Analysis Hourly Rate $15.00(base) + $3.35(H&W Fringe) = $18.35 per hour H&W Fringe H&W Fringe span a wider range of benefit solutions span Cash Wages Paid In Cash Paid to Benefit Plan TOTAL CASH WAGES $18.35 $15.00 FRINGE PAID TO BENEFIT PLAN $0.00 $3.35 PAYROLL BURDEN FICA (Social Security Taxes) 7.65% Worker’s Compensation Premiums 8.35% + Federal & State Unemployment Taxes 1% Total 17% (assumed) $3.12 $2.55 HOURLY PAYROLL TAX SAVINGS PER EMPLOYEE N/A $0.57 MONTHLY PAYROLL TAX SAVINGS PER N/A $98.61 EMPLOYEE ANNUAL SAVINGS BASED ON 2080 HOURS N/A $1,185.60 Annual Employer Savings 10 employees $11,856 $59,280 50 employees
    • The Boon Group's Experience connect connect with Boon to obtain more effective programs For more than 20 years, The Boon Group® has been the bridge that enables government contractors to:  Remain competitive  Reduce costs  Maintain robust flexible benefit plans  Ensure compliance Products are marketed through The Boon Insurance Agency, Inc., and Third Party Administrative Services are provided by Contractors Employee Benefits Administration, Inc. (CEBA®), wholly owned subsidiaries of The Boon Group, Inc.
    • Experience (continued) connect connect with Boon to obtain more effective programs The Boon Group® ―  Provides unique products and administrative services to over 500 clients and more than 100,000 members  Administers tailored benefit plans designed to meet the unique needs of federal, state and city contractors.  Markets its products and services through brokers and consultants Products are marketed through The Boon Insurance Agency, Inc., and Third Party Administrative Services are provided by Contractors Employee Benefits Administration, Inc. (CEBA®), wholly owned subsidiaries of The Boon Group, Inc.
    • Experience (continued) connect The Boon Group® has the knowledge connect with Boon to obtain more effective and expertise that is required to help contractors create benefit plans and solutions that comply with  Service Contract Act (Federal Contracts) programs  Davis Bacon & Related Acts (Federal Contracts)  Collectively Bargained Agreements (Union Contracts)  Prevailing Wage Laws (State & City contracts)  Living Wage Ordinances (City Contracts) Products are marketed through The Boon Insurance Agency, Inc., and Third Party Administrative Services are provided by Contractors Employee Benefits Administration, Inc. (CEBA®), wholly owned subsidiaries of The Boon Group, Inc.
    • reach your company’s goals with reliable programs reach Compliance & Competitiveness Generally, government contractors have three goals in common:  Compliance with governmental regulations  Competitiveness within the industry  Robust employee benefits By outsourcing benefits administration to The Boon Group®, government contractors achieve each of these goals. Products are marketed through The Boon Insurance Agency, Inc., and Third Party Administrative Services are provided by Contractors Employee Benefits Administration, Inc. (CEBA®), wholly owned subsidiaries of The Boon Group, Inc.
    • reach your company’s goals with reliable programs reach Compliance & Competitiveness The Boon Group’s fees  4.172 Meeting can be built into the cost requirements for particular fringe of most benefit plans. benefits  in general. As a result, the fees are …No deduction from paid by the insurance providers the specified amount may be made to cover rather than from your client’s any administrative costs which may be profits. incurred by the contractor in providing the benefits, as such costs are properly a business expense of the employer… Products are marketed through The Boon Insurance Agency, Inc., and Third Party Administrative Services are provided by Contractors Employee Benefits Administration, Inc. (CEBA®), wholly owned subsidiaries of The Boon Group, Inc.
    • span a wider range of benefit solutions & services Robust Benefit Solutions The Boon Group offers a wide range of ® customized products and benefit solutions span which include ―  Affordable fully insured or self insured proprietary medical plans: Tailored specifically to the applicable health & welfare (H&W) fringe rate.  Aetna Net Premier Plan: Offered exclusively through The Boon Group. This Aetna plan can be designed to meet the designated H&W fringe rate and offers robust medical coverage along with access to the national Aetna PPO Network.  Products with “Class Level” Benefits: accommodates employees who work fluctuating hours (ex. part-time or temporary employees)
    • span a wider range of benefit solutions & services Robust Benefit Solutions Additional customized products and benefit span solutions may include ―  401k Plans: uniquely designed to absorb the fringe obligation at varying levels based on job site and/or job classification  Funded Sick Leave Accounts: allows fringe dollars to go further towards covering the cost of paid sick leave benefits  Trust Services: ensures that a self-funded plan complies with the SCA regulations
    • span a wider range of benefit solutions & Robust Benefit Solutions Your client may choose to: span  Offer one of The Boon Group’s unique fringe benefit products to its employees; services  Utilize only The Boon Group’s specialized benefits administrative services (Administrative Services Only); or  Select a combination of the products and services.
    • benefits administrative services Products are marketed through The Boon Insurance Agency, Inc., and Third Party Administrative Services are provided by Contractors Employee Benefits Administration, Inc. (CEBA®), wholly owned subsidiaries of The Boon Group, Inc.
    • Services The Boon Group® provides a wide range of high quality span a wider range of benefit solutions & benefits administrative services which include ― span  Benefit Implementation Management Services: An Implementation Manager is assigned to the project and is responsible for: services  Serving as the single point of contact throughout the implementation process;  Developing a customized Implementation Plan and timeline;  Scheduling Implementation kickoff meeting and ongoing weekly status calls;  Monitoring the status of all tasks and milestones on the Implementation Timeline to ensure all target dates are met;  Remaining involved in the process 60 days following the effective date of the benefits program; and  Implementing new contracts/sites throughout the year.
    • Services (continued)  Client Services span a wider range of benefit solutions & span  Overall responsibility for the Boon/Client relationship  Serves as a single point of contact for you and your clients  Provides experience reports and fringe reports services  Facilitates the benefits renewal process  Enrollment Services  Customized benefits enrollment guides and customized enrollment forms mailed to employees’ homes  Web Enrollment Site ― employees can access benefit information, enroll and make changes  Telephonic Enrollment Services using licensed benefit counselors  On-site benefit briefing meetings
    • Services (continued)  Post Enrollment Services span a wider range of benefit solutions &  Process enrollment data (new hires, terminations and changes) span  Distribute post enrollment collateral materials (ID cards, Certificates of Insurance, Schedule of Benefits, Summary Plan Descriptions, etc.)  Transmit electronic file with payroll deduction amounts services  Employee Benefits Assistance  Toll-free customer service help line for employees: ― inquiring about their benefit options and plan details ― requiring assistance with benefit questions or claim payment issues ― requesting their Sick Leave Account balances ― needing to change elections due to a life status change
    • span a wider range of benefit solutions & Services (continued)  Benefits Administration Services span  Transmit eligibility data to benefit providers in HIPAA EDI compliant format  Premium billing and collection services services  Claims processing and payment for a variety of fully insured products and self insured plans  Verification of eligibility and benefits  COBRA Notification and billing services  HIPAA notices and certificates of creditable coverage
    • span a wider range of benefit solutions & Services (continued)  Legal and Compliance Services span  Responds to Department of Labor inquiries regarding fringe benefit plans  Prepares customized documents and assists Plan Sponsor with services Summary Plan Descriptions  Establishes Trust arrangements, develops Trust documents and agreements, and works with Trustee (a financial institution)  Tracks federal legislation governing ERISA plans and state legislation to ensure Plans are in compliance with required regulations
    • Services (continued)  Fringe Accounting and Tracking Services span a wider range of benefit solutions span  Average Cost and Individual Cost Accounting  Allocations to multiple benefit plans  Monthly Fringe Reporting  Sick Leave Accounting  Fringe Compliance Testing
    • Service ― Quality Assurance An integrated quality assurance program for both Member Services and Claims Processing: span a wider range of benefit solutions span – Every 50th claim is automatically routed for internal audit. – Errors that are identified through our Quality Assurance process are corrected by the auditors at that time. – Audit Results are logged to determine overall quality results and to detect trends used to identify needs for additional training. – Errors identified through calls to our member service department are routed to a claim processor for resolution via a call action. – Processor corrects the problem, sends call action back to the member service representative, member or provider is contacted and the call action is closed. – All phone calls are recorded for quality assurance. – Managers and Supervisors have the ability to listen in on phone calls and recordings for quality auditing and training purposes.
    • Service ― Performance Results Current Service Metric Performance Standard Actual Performance* span a wider range of benefit solutions Time Period: 2008 span Time To Process % Claims w/in 21 Calendar Days 90% 99.3% % Claims w/in 30 Calendar Days 98% 99.7% Accuracy % Financial Accuracy 99% 99.8% % Processing Accuracy 90% 95.7% % Payment Accuracy 95% 99.3% Telephone Responsiveness Average Speed of Answer 100% of all calls answered 100% of all calls within <45 seconds answered within 34 seconds % of Abandonment Rate <5% 2.1%
    • Why The Boon Group? connect connect with Boon to obtain more effective programs  Tie benefit plan costs directly to the designated H&W Fringe rate; maintain those expenditures on a pre-tax basis.  Offer your client’s employees robust benefits at an affordable cost.  Ensure your client’s maintain compliance with applicable government contracting laws: Service Contract Act, Davis Bacon Act, Prevailing Wage Laws, Living Wage Laws. Products are marketed through The Boon Insurance Agency, Inc., and Third Party Administrative Services are provided by Contractors Employee Benefits Administration, Inc. (CEBA®), wholly owned subsidiaries of The Boon Group, Inc.