You’re losing good HVAC and plumbing technicians to bigger shops — and you already know why. Health insurance. The company down the street offers it, you don’t, and your best tech just gave two weeks notice.
Here’s the thing most small trade companies don’t know: you don’t need 50 employees to offer group health insurance. You can do it with 5. This guide explains exactly how, what it costs, and the fastest way to get it set up for your team.
HVAC and plumbing companies with as few as 2 employees can access group health insurance in Utah through a PEO. Monthly employer cost typically runs $0–$400 per employee depending on how much you contribute. Most companies find it pays for itself in reduced turnover within 12 months.
Utah has one of the lowest unemployment rates in the country. Skilled HVAC and plumbing technicians have options — and they know it. When a larger company recruits them with a full benefits package, the conversation usually ends quickly.
The math for your tech is simple: a job paying $2 more per hour with no benefits is often worse than a job paying the same wage with employer-sponsored health insurance. A family health insurance plan on the open market costs $1,200–$1,800 per month. If your tech has to buy that themselves, they’re effectively earning $14,400–$21,600 less per year than a tech at a company that provides it.
If you’ve looked into group health insurance on your own, you’ve probably run into this: small group plans for 2–10 employees are expensive. Very expensive. Carriers set high premiums because small groups represent higher risk — one serious health event among your 6 employees can cost the carrier a lot.
This is why most small HVAC and plumbing companies give up on the idea. They price it out, see $800–$1,200 per employee per month, and decide it’s impossible.
But that’s not the only path.
A Professional Employer Organization (PEO) is a co-employment arrangement where your employees are technically co-employed by a larger organization. For health insurance purposes, this means your 8 technicians are part of a pool of thousands of employees — giving you access to large-group insurance rates that you’d never qualify for on your own.
The practical result: your techs can get access to the same quality health plans that large corporations offer, at rates that are typically 20–30% lower than what you’d find on the small-group market.
There’s no single number here — it depends on how much you choose to contribute as the employer. Here’s how to think about it:
| Employer Contribution Model | Monthly Cost Per Tech | What Your Tech Pays |
|---|---|---|
| You pay 100% of employee premium | $300–$600 | $0 |
| You pay 75% (common split) | $200–$450 | $100–$150/mo |
| You pay 50% | $150–$300 | $150–$300/mo |
| You offer access only (0%) | $0 | Full premium |
Most HVAC and plumbing companies start with the 50–75% contribution model. At $200–$450/month per tech, a 10-person crew costs you $2,000–$4,500/month in benefits — roughly $24,000–$54,000 per year.
That sounds like a lot until you compare it to the cost of replacing one tech: the average cost to recruit, hire, and train a replacement HVAC technician is $8,000–$15,000. If you lose 3–4 techs a year to competitors offering better benefits, you’re already spending more than the benefits would cost.
If adding health benefits costs you $36,000/year but reduces your technician turnover by 2 people annually — saving $16,000–$30,000 in replacement costs — the net cost is $6,000–$20,000. And that doesn’t count the productivity and customer satisfaction loss from high turnover.
Through a PEO like American Benefits Company, a group benefits package for Utah HVAC and plumbing companies typically includes:
We set up group health benefits for Utah HVAC and plumbing companies — free advisory service.
Once you have benefits, put them front and center in every recruiting touchpoint:
Most small HVAC and plumbing companies that add benefits see a measurable change in both recruiting response rates and retention within 60–90 days. The word gets around in the trades fast.
Generally, group health benefits can be structured to cover only full-time employees (typically 30+ hours/week). Part-time technicians can be excluded from the plan. Your PEO advisor will help you set the eligibility rules.
Under the ACA, group health plans cannot exclude coverage for pre-existing conditions. All eligible employees can enroll regardless of health history during open enrollment.
Through a PEO, most HVAC and plumbing companies can have benefits up and running within 2–4 weeks of deciding to proceed. The onboarding process is handled for you.
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