Frequently Asked Questions
What is a Defined Contribution Strategy?
Defined Contribution Strategy, is an approach to employee benefits where employers provide a fixed amount of money, or budget, to employees to purchase their own health insurance coverage.
Instead of offering traditional group health insurance plans with predetermined benefits, employers contribute a set amount towards employees' health insurance expenses, giving employees the flexibility to choose plans that best suit their individual needs. This strategy shifts the responsibility of selecting health insurance coverage from the employer to the employee, empowering them to make personalized choices while controlling costs for the employer and employee.
How can a defined contribution plan benefit my company?
The Defined Contribution strategy involves employers providing a fixed contribution or budget to employees to purchase their own health insurance plans. This approach offers several benefits, including great cost savings, greater flexibility for employees, simplified administration, and compliance with regulatory requirements.
What types of services do you offer to transition to individualized health insurance plans?
We offer complementary consulting services including current plan analysis, employee education and communication, assistance with plan selection, implementation support, and ongoing guidance. Additionally, complementary telemedicine services are provided by MDLIVE for all family members of the covered employee with $0 co-pay.
Do I as an employer have to wait until the end of our current group health plan to utilize the Defined Contribution Strategy ?
No, a change can be made any time, especially if you're eager to start saving and providing better benefits for your employees.
Will my employees' regular doctors and hospitals be included in their coverage?
Networks vary depending on the plan selected. With our individualized approach, each employee has the freedom to choose their own plan and network, ensuring their preferred doctors are included. Our advisors will assist employees in selecting the right plan to ensure their healthcare needs are met. This personalized flexibility allows you to maintain continuity of care with your trusted healthcare providers.
How long does it take to transition from a traditional group health plan to the Defined Contribution strategy?
Once the decision has been made by the employer, the transition can take place in a timely manner.
What kind of support do you offer to employers and employees after the transition is complete?
We offer ongoing support to both employers and employees after the transition is complete. This includes assistance with plan management, compliance monitoring, employee inquiries, and any additional support needed to ensure the continued success of the Defined Contribution strategy.
