Federal Contractors · One Question

Generally yes, to the extent they are reasonable and written down.

Under FAR 31.205-6, fringe benefits including employee insurance are allowable to the extent they are reasonable and required by law, an employer-employee agreement or an established policy of the contractor.

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The Detail

The short answer, then the detail.

How it works

  • A written policy sets eligibility and contribution.
  • The same rules apply on government and commercial work.
  • A benchmark shows the cost is comparable.

What to watch

  • Whether a given cost is allowable on your contract is a question for your contracts counsel or auditor.
  • The documentation is usually the exposure, not the benefit itself.

What CFH does

  • Writes the policy and contribution rules down.
  • Benchmarks the plan against comparable employers.

General information, not legal advice. Your wage determination and contract clauses govern, and contracts counsel decides how they apply to you. We bring counsel in.

Let’s Get to Work

Send us your renewal.

We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.

What to send

The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier

Four documents, two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.

CFH Insurance Consultants

An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.

Switch to CFH. Unhappy with your broker? Your employees won’t notice. You will. →

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