Case Study — Technology
98% Participation. $68K Saved. Zero Attrition to Benefits.
A growing tech company turned a supplemental health plan into their secret recruiting weapon — competing with FAANG-level benefits at a fraction of the cost.
The Challenge
This Series B tech company was scaling fast — 85 employees and hiring aggressively. But they were losing candidates and existing talent to one persistent problem:
- Benefits gap vs. big tech — candidates comparing their package to Google, Microsoft, and well-funded Series D+ startups
- HDHP sticker shock — a high-deductible plan was all they could afford, but $3,000-$5,000 deductibles made employees feel like they didn't really have coverage
- Young workforce with growing families — engineers in their late 20s and 30s starting families, suddenly caring deeply about prescription costs and pediatric access
- Premium increases threatening runway — every dollar going to healthcare was a dollar not going to product development
The Solution
Optiv Health added a Section 125 supplemental layer that transformed a mediocre benefits package into one that rivaled companies with 10x the budget.
- Free prescriptions for employees and dependents — covering everything from Adderall to prenatal vitamins to children's antibiotics
- Unlimited telehealth — 24/7 access for the whole family, perfect for parents with sick kids at 2 AM
- Pre-tax savings — FICA reduction offset the plan cost almost entirely
- Recruiting collateral — HR created a "Total Benefits" one-pager that showed the real value: major medical + free prescriptions + unlimited telehealth + preventive care = a package that competed with anyone
The Results
Financial Impact
| Metric | Before | After (12 Mo.) | Impact |
|---|---|---|---|
| FICA Tax Savings | — | $7,803/yr | New |
| Claims Reduction | $425K/yr | $344K/yr | -19% |
| Recruiting Cost Savings | $180K/yr | $132K/yr | -27% |
| Total Annual Savings | — | — | $68,000 |
Talent Impact
- 98% participation — the highest their benefits broker had ever seen at any company
- Zero employees cited benefits in exit interviews — previously the #2 reason for departures
- Offer acceptance rate up 23% — the enhanced benefits package moved the needle with candidates who had multiple offers
- Glassdoor benefits rating: 4.6/5 — up from 3.2 before the supplemental plan
"Our employees love the free prescriptions and telehealth. We've never had a benefits program with this high a participation rate. When I'm recruiting against companies with unlimited PTO and catered lunches, I show them our total health package and it closes the deal."
— Head of People Operations
The Recruiting Angle
What made this case unique was how the company weaponized the benefits upgrade for talent acquisition. Their recruiting team created a comparison chart:
| Benefit | Before Optiv | After Optiv |
|---|---|---|
| Prescription Costs | $20-$60 copays | $0 (1,000+ meds) |
| Telehealth | $40/visit | Unlimited, $0 |
| Deductible Impact | $3,000 individual | Supplemental bypasses deductible |
| Family Coverage | Employee only | Employee + dependents |
Competing for Talent?
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