The hallmark of the SGB-NIA team is finding innovative solutions that provide protection for our clients and help them save money.
We are proud to have been selected by the Board of Trustees of the California Small Manufacturing Health and Welfare Trust to be their sole broker for the California Small Manufacturing Health & Welfare Trust (CSMT) – a new program that is saving its members thousands in health care costs.
It’s a simple concept. The SMA is a non-profit that gains members – a wide variety of manufacturing companies – and promotes the needs of its members. An SMA member can join the CSMT which is comprised of many manufacturers who leverage the size of their total membership to obtain better health insurance rates and coverage. Health Insurance companies provide more comprehensive coverage at lower rates to a larger than a single employer.
The CSMT provides a fully insured benefits only, has no self-insurance component and most employers can join right away.
One of our SGB-NIA clients (a 40-employee machine shop) saved $80.000 a year in health insurance payments.
KEY ADVANTAGES OF THE CSMT
Typically, rates in the CSMT are lower than the standard market. When it comes to buying health insurance, there is a purchasing power in higher employee counts. This power of a single entity can offer you cost savings, greater control and better performance than other benefits programs.
CSMT allows smaller sized manufacturers the purchasing power of a single entity with thousands of employees. This larger ‘risk pool’ also helps shield your business from the astronomical rate increases that are currently plaguing the standard market.
PLAN FLEXIBILITY & CONTROL
Employers have the ability to select from an entire portfolio of plans with two different carriers without some of the restrictions found in the standard market. Employees can choose any of the plans offered by the employer without having to worry about the balance of employees between the carriers and plans being offered.
Additionally, the insurance carriers provide claims data not available to smaller employers outside of the CSMT. This information is critical for rate negotiations and plan usage.
MANUFACTURING INDUSTRY LEADER
At this point you may be asking yourself, if this is all true why haven’t I seen more of these trusts in the past? Simply put, the establishment of these entities is extremely complex and expensive and requires adequate participation. Because of SGB-NIA’s substantial presence in the manufacturing industry in Southern California, and our numerous relationships with manufacturing businesses, we have been selected as the sole broker of the trust on behalf of the board of trustees.
BALANCE HEALTH INSURANCE LANDSCAPE
With health insurance sots increasing at 3X the rate of inflation, as well as uncertainty resulting from ever changing governmental legislation, manufacturers are feeling the impact of what we view as an untenable health insurance model. As a result there has been a demand for an alternative. We anticipate more of these trusts to be developed in the next few years and we are excited to be in the foreground of the movement.
WHAT IS THE SMALL MANUFACTURERS ASSOCIATION OF CALIFORNIA?
The Small Manufacturers Association of California is a non-profit, manufacturing-driven mechanism that promotes California small manufacturers’ specific needs, coordinating existing resources and services and disseminating those resources through established providers.
WHAT IS THE CALIFORNIA SMALL MANUFACTURERS TRUST?
The California Small Manufacturing Health & Welfare Trust (CSMT) is a multi-employer trust whereby employers come together with their employers to provide employee benefits to their employees. CSMT continues to grow with new manufacturers joining every month.