CASE STUDY – Children’s Community School

Charter Private Elementary School
23 employees
Los Angeles Market

SITUATION
Children’s Community School (CCS) is a not-for-profit private school in Van Nuys, CA that we began working with in 2008. The massive increases in health insurance premiums since 2008 had been an unbearable burden for them given their non-profit status. They believe in offering rich benefits to the teachers, admin, and other staff and in offering a full range of additional benefits but were stuck with only health insurance at that time.

CHALLENGE
The school’s limited budget must be approved by the board of directors, and teachers are off work 2.5 months out of the year. Keeping benefits rich was nearly impossible let alone adding additional benefits. They needed some strategic thinking to ensure they could continue to attract and retain stellar teachers with a full set of benefits at a cost that fit their budget.

STRATEGY
We noticed the school had a fairly young population of employees and explored some partial self funding solutions so they could keep Kaiser Permanente as a major player in their benefits offering. By reducing the base plan to a high deductible and setting up an HRA (health reimbursement account) while improving employee engagement, the employer was able to enrich the final benefits the employees experienced to be greater than the richer plan they had previously.  Employees also have the option of other HMO and PPO plans when Kaiser is not the right fit.

OUTCOME
The HRA arrangement has been in place 3 years now with $60k to $80k in overall savings each year. The board has since approved the addition of Life/AD&D, Long Term Disability, Telemedicine, Dental, Vision, Chiropractic/Acupuncture and Long Term Care insurance to their employees package that still does not take up all the savings they have experienced in their health insurance program HRA arrangement.

OUTLOOK
Qandun has enjoyed nearly a 10 year relationship with Children’s Community School, has implemented online HR On-boarding, Benefits Administration, Payroll Integration and Employee Total Compensation Statements. We continue to maximize reductions in payroll taxes, workers compensation premiums and employee turnover by staying abreast of all the options available in the market for small group employers.