Restaurant with 7 locations and growing
Los Angeles Market
URTH Caffe had just hired a new HR Director however the incumbent agent would not take the time to come visit and go over the benefits currently in force. Instead the agency sent a thick binder information about everything URTH had in force. The HR Director needed more guidance so reach out to Qandun for an appointment. After a brief lunch we were able to simply describe everything that was in force and we identified that the agent had not made sure they were in compliance. In addition, URTH was a large group on a small group policy and were paying much more in premiums than necessary. Their program was too expensive for the majority of employees that were at or close to minimum wage. Out of 600 employees, only 85 of them were enrolled.
(Urth Caffe, Beverly Hills, CA location)
Like most restaurants, the budget for employee benefits was small and getting into compliance worried the CFO. He was concerned there would be a massive influx of enrollment, blowing the budget. Employees did not have any dental or vision options and the entire process was paper intensive. Add in coordinating 7 locations and the idea of increasing enrollment was a nightmare to think about. URTH needed to be in compliance, enroll as many new employees that really needed their coverage and they needed to be in compliance with proper notifications/disclosures to employees.
The strategy was to get the account re-rated in large group, adjust employer contributions to ensure the program met “affordability” standards per ACA, ensure other ACA and DOL requirements were being met and educating employees on the value of benefits.
In the first year after revamping the entire program, enrollment grew from 85 to 125 while at the same time total premiums paid by URTH were lower than they had paid when only covering 85 employees. Many employees who did not need nor want medical, enrolled on dental and/or vision benefits at no cost to the employer because they were voluntary. URTH’s net cost per employee is well below 50 cents per employee per hour.
Qandun is now working with URTH on expense mitigation, specialized tax incentives and other revenue improvements so they can afford to add in life, accident and disability for all employees.