Qandun Insurance Owner Offers Employers Insight on Realizing Profit by Providing Benefits

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A result of new regulations imposed by the Affordable Care Act (aka “Obamacare”), employee benefits have become a seemingly unnecessary burden to many employers. However, Qandun Insurance Owner Rudy Garcia shares his insight as to why providing a well-structured benefit plan will not only save a company money but could actually generate a profit when looking at the big picture.

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After accounting for the indirect savings attributed to less turnover and training costs, higher productivity, and less absenteeism, employers more than overcome the net costs and realize a profit.

A practiced insurance advisor for employee benefit packages and group plans, Rudy Garcia of Qandun Insurance has considerable insight to offer business owners for evaluating the costs and savings associated with various options. In light of the ongoing changes being implemented in accordance with the Affordable Care Act, Garcia has decided to share his insider knowledge to help companies understand how they can in actuality profit from the recent changes by providing benefits.

“Review the benefits provided by the most successful and profitable businesses and you’ll find that they neither skimp, nor shell them out without careful planning,” commented Rudy. “When properly implemented, employee benefits can reduce costs incurred from payroll and corporate taxes; worker's compensation premiums and claims; employee absenteeism and turnover (implicating new hire and training costs); and ‘presenteeism’. After calculating the actual savings, employee benefits in fact provide a very nice return on investment.”

Qandun Insurance Agency’s founder and owner goes on to describe the three key tips that he gives business owners for turning employee benefits into a mutually beneficial asset to the company.

His report states that the average employer pays between 50-75% of its employees’ premium for medical plans alone. In turn, the employee pays for the remaining premiums, in addition to any other benefits offered, e.g. coverage for dental, vision, chiropractic, supplemental, any dependent(s), flexible spending or health savings accounts, and contributions to a 401k or other retirement plan.

“With the proper structuring,” Garcia insists, “employees’ contributions can be deducted pre-tax, mitigating the employer’s cost by reducing payroll taxes and worker’s compensation premiums.”

Garcia suggests that simply having their own health insurance lessens the likelihood of worker's compensation fraud, and in turn reduces the number of claims and spikes in premiums. He concludes that after considering how the employer’s portion is a tax write-off for the company, and then factoring in the cumulative value of indirect savings from reduced turnover, training costs, absenteeism, and presenteeism, the value in a properly structured benefits plan is easily realized.

In Garcia’s analysis, he projects that the net cost to the employer for providing benefits—after accounting for direct savings e.g. lower payroll taxes— ends up being approximately 40-80 cents per hour for each employee. Furthermore, since around 1/3 of employees qualify for benefits through an alternative program (such as Medicaid or Medicare), only 60-70% of employees are actually even enrolled for an employer-based plan.

“After accounting for the indirect savings attributed to less turnover and training costs, higher productivity, and less absenteeism, employers more than overcome the net costs and realize a profit,” stated Garcia.

He even suggests a strategy for eliminating the trivial 40 to 80 cents per hour, hard dollar cost to employers for providing benefits. “While the savings more than offsets the cost,” he claimed, “an employer could choose to modify its pay raise structure to absorb the net cost of its group plan, in essence negating the entire expense associated with offering benefits, while still reaping the boost in employee productivity and loyalty.”

In Garcia’s conclusion, he states that even for companies that aren’t subject to the new ‘pay or play’ penalty brought on by PPACA (Healthcare Reform or "Obamacare"), offering benefits is in a company’s best interest. He maintains that the real penalties at stake to employers are being unable to hire and retain a skilled workforce; the loss of productivity due to absenteeism; and use of worker's compensation for non-work related health issues. In closing, Garcia stated, “No matter what way you slice it, employers that don’t offer benefits are at a severe disadvantage, and those that do it right end up making their business a lot more profitable over the long haul.”

For more information about Qandun Insurance Agency, please visit, or contact Rudy Garcia for any other inquiries. Request a free consultation and quote on an employee benefit plan on Qandun’s website.

About Qandun Insurance Agency, Inc.:
Rudy Garcia, President of Qandun Insurance Agency, Inc. in Glendale, CA is an independent 20 year seasoned expert professional in employee benefits. He encourages employers of any size to seek out brokers or consultants that ensure businesses implement a strategic employee benefits package while ensuring other business cost drivers and inefficiencies are addressed. It's key that businesses not only implement a smart plan but ensure they do it in a way that addresses needs from a holistic perspective. Compliance with local, state and federal regulations, sound human resources practices and integrated systems that ensure the business can focus on revenue producing activities are the hallmark of a broker that has your businesses best interest in mind. Visit for more info.

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Rudy Garcia - President

Fuz Edwards - Marketing Director
Qandun Insurance Agency, Inc.
(213) 926-4466
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Qandun Insurance Agency, Inc.
since: 02/2012
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