MEMBERS: Username: Password:

NOT A MEMBER? Join NAGC now to access this benefit

Health insurance, retirement plans, and other fringe benefits (Davis-Bacon Plans) are available from the National Association of Government Contractors through our partnerships with outside insurance carriers and brokers in most states. Plans may not be available in all states and are subject to restrictions based on the state you do business in. Due to the variety of plans offered in each state and the rules governing those plans, NAGC is not able to answer questions regarding plans or plan design.

NAGC can offer support in the design and implementation of health and retirement plans for government contractors. The plans are designed to reduce labor costs and increase benefit levels. The plans are designed to exactly equal the fringe rate on your government contracts.

Contractors paying the fringe rate in cash are at a competitive disadvantage on their labor costs because they incur additional expenses in the form of payroll burden including FICA and Higher Workers Compensation premiums.

This example demonstrates the savings as a result of providing benefits versus paying the fringe rate in cash.

	No Benefits/ Cash Payout	Providing Benefits
Cash Wages:	$17.59	$15.00
Fringe Paid to Benefit Plan:	$0.00	$2.59
Payroll Burden:	$3.52	$3.00
Total Cost Per Hour:	$21.11	$20.59
Annual Savings Per Employee: $1,081.60 Total Annual Savings: $216,320
Assumption: $15.00 base hourly rate plus $2.59 fringe rate with 200 employees

The scope of services that a government contractor requires often depends upon the nature of its contracts, the funding arrangement for the benefit plans (fully insured or self-insured), and the type of employees working on their various contracts. Some of the services include:

• Tracking and accounting of fringe benefit contributions
• Responding to Department of Labor inquiries regarding fringe benefit plans
• Collecting fringe contributions to serve as a single pay point
• Maintaining employees’ fringe benefit account balances
• Communicating fringe benefit to employees and enrolling them in the plans
• Assisting with employee’s benefit questions

Through a partnership with eHealth, the National Association of Government Contractors is offering health and dental plans for small businesses. A variety of plans are available, including affordable Health Savings Accounts plans that allow you to save tax-free while reducing insurance costs for you and your small business.

Health and dental plans are available from major providers in all states. Please click for a quote to see providers and price quotes in your area. Individual quotes are also available to insure you and your family.

Frequently Asked Questions
Plans are offered by a variety of carriers in each state, therefore NAGC is not able to answer questions regarding insurance plans. Please request a quote and direct questions to the carriers selected.