Machine Build Technologies, LLC (MBT) makes custom-manufactured metal products for industries including mining, oil and gas, and new energy. MBT has been in business since 1986, starting out of a garage and growing into a trusted partner for advanced design and manufacturing. Most of MBT’s 120 employees are skilled trades workers such as welders, machinists, and painters. The company also employs engineers, project management, administrative staff, and other support roles.
Manufacturing relies on a varied team of professionals to succeed — the role of the company accountant is just as important as that of her colleagues on the production floor. This diversity complicates health benefits for manufacturers, because a group plan cannot provide the right amount of coverage to employees with such different demands on their health. Expensive renewals are a further challenge for an industry already facing the rising costs of raw materials, components, and transportation.
MBT’s HR Manager Ashley Neppl has been at the organization for over a decade. She cares about MBT’s employees and wants everyone to have access to the benefits they need to take care of themselves and their families. However, as the cost of their group plan grew, the risk that employees would choose to go without coverage also increased. Neppl, together with HR specialist Mariah Costa, knew there must be a better way to support their employees.
We want the employees to invest in their health,” said Neppl. “It's important to have health insurance, just like it's important to have car insurance or homeowners insurance. Even if you're not going to use it, you’ve got to have it.
A one-size-fits-all group plan was failing to meet the needs of MBT’s diverse workforce. The physical demands of fabrication work create health requirements distinct from those of office-based employees. Add to that other factors such as age or income, and the need for a more customizable benefits solution was clear.
MBT’s group health insurance was also getting more expensive. Employees were making frequent claims on their insurance, and their provider responded by increasing premiums. MBT received a 34.5% renewal quote heading into 2022. Even when split between the employer and employees, a price hike of $386,000 would have a huge impact on affordability.
“We were quoted a 34.5% increase with Anthem — we had a lot of high claimants which was really driving that increase — and a lot of other carriers wouldn't even quote us,” explained Neppl.
MBT’s insurance broker suggested moving from a group plan to an individual coverage HRA (ICHRA). ICHRA allows employers to reimburse employees for individual health insurance premiums and other medical expenses tax-free. The employer sets a monthly allowance that employees use to purchase a plan on the individual market. For MBT, ICHRA would mean cost control and budget stability, while employees could finally get coverage to suit their personal needs.
MBT discovered Take Command after a poor experience with another ICHRA vendor. In particular, MBT was drawn to Take Command’s AutoPay feature, where employees set up automatic payments for premiums directly from their bank account to their chosen provider. AutoPay helps MBT employees avoid late payments and maintain consistent health coverage.
Neppl also prioritized customer service when selecting a new HRA administration platform. With on-demand support from Take Command’s licensed healthcare navigators, MBT employees can shop for insurance with confidence. In addition, Take Command resolves individual issues directly with carriers — unlike with their previous vendor, employees do not have to make the call themselves.
“Having Take Command as a broker of record is really helpful,” said Neppl. “The fact that Take Command will step in and assist people when needed was a selling point for us.”
With ICHRA, employees in every role have access to health insurance that fits their needs and budget.
Using Take Command’s window shopping tool, staff are taking the time to compare plans and get the right level of coverage for themselves and their families. They also know expert support is just a phone call away.
Individual coverage means employees can switch providers when their circumstances change. When one MBT employee relocated to a different state, she was able to move to a plan with in-network providers in her new local area. On the previous group plan, she may have been left with limited options.
Employee health benefits have become a predictable line on the manufacturer’s annual budget. MBT fixes a monthly per-employee allowance and decides whether or not to adjust that amount each year. MBT employees are now part of the country’s largest risk pool — tens of millions purchase health insurance on the individual market. As a result, high usage by some employees no longer drives up costs for their colleagues or the company.
Switching to ICHRA was definitely worth it,” concluded Costa. “With the amount of money we’re saving, and the choice our employees now have, there’s no going back.