Why this fits
- Almost every production employee is W-2, full-time, and already on group health - the eligibility test passes by default.
- Manufacturers see the highest claim reductions on the underlying group plan because primary care, urgent care, and Rx visits move off the major medical line.
- FICA savings on a 100–500 person plant turn into real budget for retention bonuses or facility maintenance without touching margin.
A real example
A 132-employee Michigan tier-2 auto supplier with an 18% group health renewal in 2024 brought EHP in alongside its existing BCBS plan. In year one, the employer recaptured $74,200 in FICA tax savings net of admin fees, and the underlying group plan's primary care and urgent care claim line dropped 14%. Employees with families saw an average $145 monthly take-home pay increase.
Numbers are illustrative and anonymized. Actual results vary based on payroll, state, participation, and industry-specific factors. We do not share named client information without explicit, written consent.
The math for a typical operation
A 150-person plant with average $4,500/mo pay typically nets $58,000–$72,000 in annual employer FICA savings after admin fees, plus a separate, measurable reduction in claims on the primary group plan at next renewal.
Common objections, answered honestly
Most CBAs do not require renegotiation because this does not change the underlying health insurance plan or the employee's pre-tax election from it. It sits alongside. That said: get your labor counsel to review the SIMERP plan document before rollout - we recommend it on the discovery call.
Seasonal and sub-30-hour staff are not eligible. The program only benefits W-2 employees working 30+ hours who are already enrolled in your group health plan. The math we run for you only counts the eligible population.
Brokers earn commission on health insurance premiums. SIMERPs don't generate broker commissions in the same way and they reduce claim activity on the underlying plan, which can lower next year's broker-of-record revenue. That's the structural reason. The compliance backing - IRS, ACA, ERISA, HIPAA - is solid; the indemnity-plan version is the one your broker should be steering you away from.
How this integrates with what you already have
- Your existing BCBS / UHC / Cigna / Aetna group plan (no replacement)
- ADP, Paychex, Paylocity, UKG, Workday payroll integrations
- Existing wellness programs and EAPs (sits alongside)
Most relevant benefits for this industry
Unlimited virtual primary care visits with a real, board-certified doctor - no copay, no deductible, available the same day in most cases. Spouses and up to five dependents are covered on the same plan.
When something happens at 11 PM on a Saturday, the choice should not be "$300 ER copay or wait until Monday." 24/7 urgent care with board-certified physicians is included for every employee and family member.
Most common generic prescriptions filled at $0 to the employee, with deep discounts on brand-name and specialty drugs. Technically a discount plan - the discount just happens to be 100% on most generics.
Most benefits programs charge a per-dependent premium. This one extends every benefit - primary care, urgent care, mental health, prescriptions, weight health - to a spouse and up to five dependents at no additional cost.