Do You Know About Defined Contribution Health Care Plans?
Employers can now predict and plan for your health benefit costs by choosing how much money to allocate to employees!
This process is called “defined contribution” and it can pay great dividends in monitoring and controlling your health care costs.
How does it work?
- Choose a monthly allowance for each employee (similar to a business expense account account, the money stays with the company until an expense is incurred)
- Employees select their health insurance policy (employees choose policies that best fit their needs and typically cost less than ½ the price)
- Reimburse employees tax-free (employers use the BSIHRA software to reimburse employees for their insurance premiums and medical expenses)
Contact our health care consultants to learn more about how defined contribution can help your business.