Customer case study: Summit Dental Group

The challenge

When Drs. Bryan Hilton and Corry Marcincin took over Summit Dental Group in 2013, the clinic wasn’t providing health benefits to its employees. However, they learned there was a need right away. Being in a resort community, the cost of living is really high and the unemployment rate is extremely low. With many nearby practices competing for talent, they even lost some employees to clinics with established health benefits.

The health benefit had to be affordable for both their business and the employees as well as fit the needs of their full-time employees. Working in the medical field, their employees risk their health every day when they come into the office, so the benefit had to provide value and cover a wide range of care. They started looking into health benefits options and quickly realized traditional health benefits left a lot to be desired.

Group health insurance was very expensive and it didn’t provide a benefit to the employees that had coverage under a spouse. To keep things fair across all of their employees, they wanted a benefit that worked for everyone. Even the most affordable group insurance plan had a limited network and still had high premiums and high deductibles.

The doctors also looked into adding additional income to their employee’s checks as a taxable stipend, but they were concerned that it wouldn’t feel like a real benefit. Extra money on a paycheck tends to feel like a raise instead of a formal health benefit, and there was no way to ensure that the money would be used on medical expenses. Plus, since a stipend is considered income, the practice would have to pay payroll taxes on stipends and employees would pay both payroll and income taxes.

While they knew these options wouldn’t work for them, they were determined to find the right fit.

The solution

After hearing about PeopleKeep, Summit Dental Group found the QSEHRA. With a QSEHRA in place, they would be able to offer employees a tax-free allowance based on what the practice could afford that employees could use to pay for eligible health expenses. All expenses would be verified by PeopleKeep’s documentation review team ensuring compliance. This would take the heavy lifting off of their small business while leaving the control of the benefit in their hands.  

The doctors had the option to allow for both reimbursing individual insurance premiums and eligible out-of-pocket medical expenses or only premiums. Choosing to reimburse for both premiums and other expenses would help make their clinic stand out and appeal to potential new employees as well as keep current employees happy with a more comprehensive benefit.

The results

Since partnering with PeopleKeep in 2016, Summit Dental Group has hired eight full-time staff members. The PeopleKeep benefit was an influencing factor behind their new hires because its flexibility allows for them to use their allowance on whatever medical expenses they need. It also helps them stand out in their field from other companies that only offer traditional health benefit options.

As a major plus, employees now have access to care they wouldn't have been able to cover previously such as chiropractic services. Because the benefit is personalized to each employee, it has been instrumental in keeping employees with the clinic long-term. Morale has increased as employees feel cared for and are able to prioritize their health care needs.

The clinic is now saving around $1,968 in taxes compared to a taxable benefit which is extremely beneficial for any small business. The doctors can log into the PeopleKeep software to view verified expenses, make employee updates, and schedule reimbursements in as little as 2 minutes per month which saves them time and keeps their focus on their business and patients.