3 ways health insurance is different for engineering firms
Engineers aren’t like other people. They’re always looking for a better way to do things. That innovative mindset extends to health, too. In fact, there are three major advantages engineers have over other professionals when it comes to health insurance. Make sure your firm is taking advantage of them.
Engineers tend to be healthier than other professionals. It’s estimated that engineers are in the top 10% of healthiest industries. That means that engineers can sometimes get “preferred industry rates,” translation: lower cost health insurance. That’s even truer if you can pool your resources with other engineering firms. Speaking of which …
Engineering firms can partner up to get collective buying power. The American Council of Engineering Companies (ACEC) set up a trust for its members to purchase life and health insurance as part of a national group, which means even small firms can get pricing and benefits usually only available to big companies.
Even small engineering firms can get the benefits of self-funded health insurance. While typically only large companies can self-fund their health insurance (which means they get to keep any money they don’t spend), a plan structure called level-funding makes the same advantages available to small engineering firms. You pay a monthly premium, like in a normal full-insured plan; you’re also protected against the risk of large unexpected costs. But a portion of any funds you don’t spend go back to your firm at the end of the year, like in a self-funded plan. It’s the best of both worlds (and yes, ACEC Life/Health Trust does offer a level-funded plan called the Select Plan).