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Launch HN: Savvy (YC W20) – Give employees tax-free cash for health insurance

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Re: Launch HN: Savvy (YC W20) – Give employees tax-free cash for health insurance

#91

Post by kevc »

Jommi wrote: post #84

How does this compare in cost to startups using justworks that has better negotiating power for cost savings in the insurance even with low amount of employees?

Choosing a PEO also means that you are outsourcing all your HR functions - payroll, retirement, benefits, etc. Part of that includes large group insurance prices. In return, you pay a per-head fee to the PEO.

If cost is the primary driver for your decision the important thing is to compare the PEO fees vs how much money you will save on the discounted insurance. We have helped a few companies do this analysis - On a pure cost basis, we are a better option for some, PEOs win for others. Feel free to reach out to hn@gosavvy.com if you want advice on your specific situation.

Re: Launch HN: Savvy (YC W20) – Give employees tax-free cash for health insurance

#92

Post by kevc »

sn wrote: post #88
kevc wrote: post #85

Earlier quoted context omitted.

Association health plans are a way to group small businesses together for large group pricing, without using a PEO. https://www.dol.gov/general/topic/association-health-plans We think other companies offering ICHRA services are a good thing. It's a new option that can help a lot of people, and more vendors will spread the word faster. Savvy works a little differently than the existing solutions. Instead of a reimburs…

I saw that it's legally possible to form an association health plan. I don't think there are very many of them, or if there are, they are not public organizations.

You are right, some of the regulations around association plans were only recently decided, so they are not widespread. We are very interested and working with some experts in the space to better understand how we can leverage them.

Re: Launch HN: Savvy (YC W20) – Give employees tax-free cash for health insurance

#93

Post by kevc »

jedberg wrote: post #90
kevc wrote: post #82

Earlier quoted context omitted.

Yes, you can do exactly as you describe. I'll make that more clear on our website.

Ok cool! So I went through the signup flow and got to the last step that creates the docs and charges me a $100 setup fee, but I'm still not clear on how the program works. Will this be deducted from their paycheck or from my account? Where will that money come from if I deduct from their check? Do you integrate with Gusto? I'm just not at all clear on the logistics of how the money moves from my company to their hea…

Apologies - We usually walk customers through the setup over the phone, definitely needs some work to be fully self-serve. We appreciate the feedback.

To answer your question: The premiums will be deducted from your account, and any extra employee contribution would be deducted, tax-free, from the employees paycheck. We integrate with Gusto to set this up for you.

I am happy to walk you through the specifics: kev@gosavvy.com

Re: Launch HN: Savvy (YC W20) – Give employees tax-free cash for health insurance

#94

Post by kevc »

rebelidealist wrote: post #66

This is nice for remote companies. We went to the pain of trying to get a good price Kaiser group plan but found out that Kaiser doesn't operate in other states that we have employees in.

Thanks! We have definitely found we are a good fit for remote companies with employees in multiple states. If you don't mind me asking, what did you end up doing for your health insurance?

Re: Launch HN: Savvy (YC W20) – Give employees tax-free cash for health insurance

#95

Post by jedberg »

kevc wrote: post #93
jedberg wrote: post #90

Earlier quoted context omitted.

Ok cool! So I went through the signup flow and got to the last step that creates the docs and charges me a $100 setup fee, but I'm still not clear on how the program works. Will this be deducted from their paycheck or from my account? Where will that money come from if I deduct from their check? Do you integrate with Gusto? I'm just not at all clear on the logistics of how the money moves from my company to their hea…

Apologies - We usually walk customers through the setup over the phone, definitely needs some work to be fully self-serve. We appreciate the feedback. To answer your question: The premiums will be deducted from your account, and any extra employee contribution would be deducted, tax-free, from the employees paycheck. We integrate with Gusto to set this up for you. I am happy to walk you through the specifics: kev@gos…

No worries, I understand. I think I'm all good now. Maybe just some text on that final page with these details would be great.

Re: Launch HN: Savvy (YC W20) – Give employees tax-free cash for health insurance

#96

Post by kevc »

jcrben wrote: post #74

As someone with a chronic illness, thank you for this. I don't want my employer to be responsible for my insurance. I want portability and privacy. I want more than just the options my employer decided to pick. If this becomes a trend, we could see the individual ACA marketplace strengthened. Right now part of the problem is that they are missing a lot of the healthy people in the group market, which is partly why th…

Thanks! We appreciate it. We believe Savvy and the new regulations will strengthen the individual market.

Re: Launch HN: Savvy (YC W20) – Give employees tax-free cash for health insurance

#97

Post by marcinzm »

tyingq wrote: post #67

The health plan rates available to individuals cost quite a bit more than ones negotiated by a big company or consortium of smaller companies. When I last had to do my own insurance, it was $2200/month for a high end, lowish deductible plan that covered my family. Choice is nice, but the costs are so high now that I'd rather have the lower negotiated rates with less choices.

>When I last had to do my own insurance, it was $2200/month for a high end, lowish deductible plan that covered my family.

That's probably not too far from what you'd get with an employer except you're paying the whole cost instead of them. My middle of the road employer plan costs $1250 for me and my spouse (not counting dental and vision). I think family was $1700 or so. And sounds like you were aiming for a decently better plan than what I have.

Re: Launch HN: Savvy (YC W20) – Give employees tax-free cash for health insurance

#98

Post by rabidrat »

kevc wrote: post #79
choward wrote: post #65

So we're adding another middleman to the healthcare system? It seems like we should be working toward the exact opposite of this. I view any service like this that makes money from the healthcare industry but doesn't actually provide healthcare as a huge inefficiency that will further increase the price of healthcare. What's next? A startup that helps you choose between these middlemen companies? This insanity has to…

We agree that less distance between the buyer and the end user is better. In our case, the middleman we are removing is the employer. With us, employers are no longer picking specific health insurance policies on behalf of their employees. Instead employees are purchasing them directly through our app, but still reaping the significant tax savings of employer-provided health benefits.

One of the key benefits of employer-sponsored health insurance for me is that I don't have to shop for health insurance. Talking with my self-employed friends and the ridiculous number of options (which are all designed to screw you anyway when you get really sick) makes me want to never have to go through that process.

Re: Launch HN: Savvy (YC W20) – Give employees tax-free cash for health insurance

#99

Post by wolco »

jedberg wrote: post #90
kevc wrote: post #82

Earlier quoted context omitted.

Yes, you can do exactly as you describe. I'll make that more clear on our website.

Ok cool! So I went through the signup flow and got to the last step that creates the docs and charges me a $100 setup fee, but I'm still not clear on how the program works. Will this be deducted from their paycheck or from my account? Where will that money come from if I deduct from their check? Do you integrate with Gusto? I'm just not at all clear on the logistics of how the money moves from my company to their hea…

Setup fee?

Why not offer a free month. The lockin is automatic once they go through the process of setting things up.

Re: Launch HN: Savvy (YC W20) – Give employees tax-free cash for health insurance

#100

Post by lotsofpulp »

rabidrat wrote: post #98
kevc wrote: post #79

Earlier quoted context omitted.

We agree that less distance between the buyer and the end user is better. In our case, the middleman we are removing is the employer. With us, employers are no longer picking specific health insurance policies on behalf of their employees. Instead employees are purchasing them directly through our app, but still reaping the significant tax savings of employer-provided health benefits.

One of the key benefits of employer-sponsored health insurance for me is that I don't have to shop for health insurance. Talking with my self-employed friends and the ridiculous number of options (which are all designed to screw you anyway when you get really sick) makes me want to never have to go through that process.

That isn’t a benefit at all. Not to mention I don’t see why an employer has any less incentive to offer a plan that “screws you”.

Anyone can easily use healthcare.gov to find a plan appropriate to their needs. And you’re healthcare providers are not tied to your employer, in case you leave your job.

And any employer that doesn’t offer HSAs is really screwing their employees by not giving the option of the best investment vehicle available to Americans.

An additional benefit is your compensation gets more transparent, as you can easily see the dollar amount of the benefits you’re receiving prior to accepting job offer.

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