Life Science Companies in California Can Pool Together to Secure Competitive Employee Benefits

New law SB 718 will help California attract and retain top talent

October 27, 2021California

California’s emerging life science companies can continue to combine their purchasing power to secure employee benefits to compete more effectively with larger firms following the passage of SB 718 in early October.

The new California law allows life science health trusts—which meet a rigorous set of quality standards—to operate, enabling small to mid-tier life science firms to obtain consistent pricing through Beyond Benefits. This trust is a group health benefits program through Biocom California Purchasing Group, the group purchasing organization serving California’s largest life science membership association.

Beyond Benefits allows life science companies with four or more employees to secure competitive healthcare benefits to attract and retain highly skilled talent. Established in 2012, Beyond Benefits covers more than 35,000 lives and has realized $6.2 million in first-year savings for nearly 260 participating firms.

Compared to market trend rate increases of up to 12%, Beyond Benefit’s 5% average renewal increase since 2012 is well below what employers experience outside the Trust. Marsh McLennan Agency (MMA) operates the trust in collaboration with Biocom California.

A win for employers and California

Beyond Benefits addresses a key challenge facing life science companies in California: the ability to fill and retain a diverse pipeline of skilled workers—especially post-pandemic, when demand for top talent is at an all-time high.

To achieve that objective, Beyond Benefits offers benefit plans from best-in-class insurers to provide stability and scalability for life science employers looking to compete nationwide. The feature-rich plans include medical, dental, vision, short- and long-term disability coverage, as well as access to mental health programs.

Beyond Benefits also provides simplified plan administration—and at no cost to employers—COBRA administration, consolidated billing, benefits communications, HR resources, an online enrollment portal, a dedicated call center, and wellness tools.

The law may also be a big boost to California’s economy. California’s life science industry provides over 1.38 million jobs, with economic activity generating a total of $131 billion in 2020 alone.

“This bill is a major win for California’s dynamic life science industry and for the state’s economy,” Greg Giandomenico, VP and Managing Director of Biocom California Purchasing Group, said. “The legislation will enable growth companies to compete for talent more effectively by providing top notch employee benefits. Biocom California thanks Gov. Newsom and the state legislature for supporting an industry that creates many high-quality jobs, drives innovation, and represents the entrepreneurial spirit of California.”

Find out more about Beyond Benefits

Interested in learning more about how Beyond Benefit can help you attract and retain employees? Click here.