Before a RIF, factor in small vs large group health plan costs

If you’re contemplating a reduction in force (RIF) to cut your operational costs, it’s critical to avoid this all-too-common mistake.

Large vs Small Group Health Plan Costs

If the RIF will drop you down from large group to small group health insurance rates, you risk paying significantly more at your upcoming health plan contract renewal. 

Before you move ahead, proactively discuss any unintended consequences with your benefits advisor. They should be able to calculate the financial impact of moving to small group compared to the cost of maintaining large group status.

It may very well be in your best interest to retain all (or more) of your employees.

Reducing your overall healthcare costs

When it comes to healthcare costs, it would be remiss of me not to point out that tech firms bear the brunt of inequity. With an employee population that tends to skew young and healthy, these groups typically serve to subsidize losses in the carrier's broader portfolio of business.

If you’d like to find out whether your health plan rates are fair, request a complimentary benefits benchmark. As benefits advisors, my team and I can quickly let you know what can be done to reduce healthcare costs for you and your people.

I also encourage you to check out what we achieved for clients like Greenhouse, GoFundMe, and Wealthfront.