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Defined Contribution Health Plans
Defined Contribution Health Plans are clearly the best solution for every healthcare consumer, the employer and especially their employees, and the USA. Let employees choose their own health plans and benefits from an array of choices.
Wouldn’t you think that the most important purchase one makes in their life should be their health plan? Why is it delegated to the government (Medicare, VA, and Medicaid) or to an employer, to pick our precious health plans and ultimately direct our healthcare decisions? This is a fundamental flaw in our current healthcare delivery system that excludes the individual from the engagement of picking a plan particular to their needs, utilizing the benefits they choose, and most importantly taking ownership of the plan.
Please contact our office for a refreshing review of available benefit designs meant to fully utilize offerings from a defined contribution platform.
We can show you how to save thousands,
and be ACA compliant!
Defined Contribution Plans offer several benefits for employers:
- Attract and Retain Good Employees – The purpose of an employer’s benefit plan is to attract and retain good employees. Unfortunately the current group benefits model makes accomplishing this and remaining profitable a difficult task. The Defined Contribution approach gives employees more choice, better coverage, and more affordable options that stretch both the employer’s dollar and the employees.
- Cost Control and Predictability – One of the greatest benefits of the Defined Contribution approach is that employers can define the allowance that is affordable to them and the employees can choose from a multitude of plans which one offers them the best balance of coverage and premiums. Also, the carriers aren’t dictating participation and funding requirements or throwing in rate increases that can throw a company’s budget out of balance.
- FICA Savings – For employers that currently do not offer benefits to their employees they are missing out on some huge tax advantages. For every dollar the employee sets aside for their pre-tax premiums or for spending accounts such as HSA’s or FSA’s the employer saves 7.65 cents or 7.65% – the matching FICA contribution.
- Greater Appreciation from Employees – Unfortunately most of the time, effort, and money spent by employers to offer benefits to their employees goes unappreciated. The high premiums of group insurance plans typically require a significant share of that cost to be contributed by the employee. While this can by payroll deducted on a pretax basis the amount required to contribute is still more than most employees can afford. The thousands of dollars employers are willing to contribute are left on the table because the employee cannot afford their share. To the employees in this situation you may as well not offer benefits at all.