Tag Archives: administration

Businnes Plan

Benefits Administration Business Plan


Benefits Administration Business Plan


Employee Benefits Administration (EBA) provides outsourcing of benefits administration for small to medium-sized enterprises. The Morgantown, Pennsylvania-based office opened its doors to the public.

Many employers today are looking to outsource any function that is not directly linked to the generation or income. Consequently the Human Resources Administration function is one of the first to be considered for it has no direct link to bringing revenue across the threshold.

Outsourcing is an innovative approach that can increase productivity while also reducing costs. Employee Benefits Administration’s goal is to provide high quality benefits management and customer service so that clients can focus on their core competencies.

EBA will target clients who have between ten and five-hundred employees at its inception. The service will offer four levels of customization, so clients can choose the one that best suits their needs.

  • COBRA (Consolidated OmniBus Reconciliation Act), and HIPAA Administration
  • Administration of flexible spending accounts
  • Basic Benefits Administration is a program that provides basic benefits to people who are eligible for welfare and health plans. It also includes a call center.
  • A level that combines the three previous levels.

EBA will market its services through business associates, insurance brokers, local businesses, and professional associations. EBA also has plans to become certified in the state of Pennsylvania as a “WBE”, Women’s Business Enterprise in order to do business on the Federal, State and Local government levels.

Employee Benefits Administrators was established as an LLC (Limited Liability Company). Cindy Wells, Diane Davis and the company’s principals are equal owners. Together, they have more than 25 years’ experience in employee relations, corporate benefits administration, legal compliance, communications, legal compliance, customer service, and have a track record of outstanding customer service. Their experience in dealing with all levels of management as well as employees, gives them an edge over their competitors.

This business plan was prepared to provide financial forecasts for three years and to secure initial funding. This will cover the start-up expenses as well as the operating expenses for year one. Employee Benefits Administrations projects significant revenue by year one, and incredible by year two.

1.1 Objectives

EBA hopes that the next three year will bring about:

  • A substantial first year revenue and phenomenal growth the following year.
  • One new client/month in COBRA services; one new client/quarter in basic and all-inclusive service.
  • By the beginning of Year 2, there were three staff, and by Year 3, there were seven.
  • To evolve from strictly administering benefits to offering payroll services by the end 3rd year and/or any other HR Services that clients may be interested in outsourcing.

1.2 Mission

Employee Benefits Administrators offers high quality benefits administration for small and medium-sized companies. This allows them to focus on strategic initiatives.

1.3 Keys to Success

The keys to EBA’#8217’s success are:

  • Excellent communication and customer service skills — completely confidential, reliable, and trustworthy expertise and information
  • The best Human Resources Information software module on the market
  • Thorough knowledge of benefits administration issues


Businnes Plan

Health Plan Administration Business Plan


Health Plan Administration Business Plan


Southeast Health Plans, Inc. is a service company that will provide health plan administrative services to self-insured employers. The company will focus its efforts on employers with 50-50 workers. Many of these employers have current HMO, PPO, or major national insurance carrier health plans. Most employers with 500 employees and more have at minimum some self-insurance. But, this market is often ignored or overlooked by national insurance companies. More than 80% of 500-plus employees have their own insurance, but Southeast Health Plans discovered that 25% to 25% of Atlanta’s 50-500-employee-owned businesses have no self-insured plans.

Companies who are currently self insured and those with other types of insurance will have to transition to self-insurance. High quality consulting and administrative services are key factors in the transition to auto-insurance. Southeast Health Plans, Inc.’s experienced management has formed a strategic alliance of Blue Cross/Blue Shield Pennsylvania’s subsidiary Blair Mill Administrator to offer first-class benefits management service to its target market.

Southeast Health Plans, Inc., will grow its revenue to more than $5,000,000 over five consecutive years, and earn a net income after tax of $1.6million. After-tax earnings of $560 million will make the company profitable by year three. Margins as a marketing company and service provider will be high. Gross margins exceed 80% (less sales incentives costs) and close to 50% after operating expenses. Once market penetration has reached maturity, the company will turn profitable.

Southeast Plans, Inc. will succeed if it can attract the initial capital needed to market its services throughout the Atlanta metropolitan area and northern Georgia. A professional sales team is crucial. The company will then need to expand its success in the Southeastern markets. The company must control costs, especially with respect to marketing programs and sales, in order to expand within the Southeastern markets. This will be possible by utilizing internal cash flow to fully fund expansion.

1.1 Objectives

The company has the following objectives:

  1. To create co-operative marketing with Blair Mill advertising executions using media in the Atlanta Metro Market.
  2. To hire sales staff both currently identified and unidentified to implement sales lead follow-up strategy.
  3. At least 4,800 employees total under management by year end.
  4. To break even by the end year two with a net loss of less than $100,000. While increasing market share,
  5. To move to earnings in the third year and to increase gross margin contributions through market maturity.
  6. To expand regionally with both media and sales personnel to penetrate new markets while consolidating service capability.
  7. To continually achieve cost-savings through an expanding provider network without compromising patient care.
  8. To have more than 98,000 cumulative employees under management by the end of year five.

1.2 Mission

Southeast Health Plans, Inc. is dedicated to providing small and mid-size employers with a comprehensive benefits administration program that will enable employers to control health benefits costs while allowing employees within the plan to have access to quality health care. Southeast will provide the best quality health care to both its employees and clients by combining self insurance with stop-loss programmes and efficient plan management. Southeast will provide quality care at a fair cost.

1.3 Keys To Success

These are the keys to your success in this industry:

  1. Marketing. Southeast Health Plans can be sold directly to employers or through independent agents and insurance brokers. It will be necessary to establish name recognition among more established programs. Media budgets must be managed and closing ratios of at most 5% per year maintained.
  2. Quality service. Blair Mill Administrators’ services are considered the best among small-employer providers. Customers will be satisfied due to the value-added experience of the Southeast Health Plans, Inc. Management Team and their provider network.

Client satisfaction is essential to avoid client erosion and fight competition. Renewals should be at least 85% of existing clients.

  • Moderate growth. Growth must be aggressive and include rapid expansion into new markets, but it must also focus on profitability. To ensure internal funding, each market must mature and develop as new markets emerge. Cash flow management plays a vital role. Both market expansion as well media effectiveness must constantly be evaluated, and then re-evaluated or modified as needed.