10 signs you should consider defined contribution health benefits
March 4, 2014 4:48 PM
1. You cannot afford a small group health plan
Now that Obamacare is passed, and every single policy is guaranteed issue, theres virtually no reason for a small business with less than 50 employees to continue to offer group health insurance because most employees can get the same policy on the individual market for less money, says Rick Lindquist, president of Zane Benefits. [Images: Shutterstock]
2. You need to strategically customize health benefits to recruit and retain employees
Health benefits whether its a defined contribution in a dollar figure or its an actual health insurance policy are going to exist for the foreseeable future because we as American employees have an expectation that an employer will be involved in contributing to our health care, Lindquist explains.
3. You need predictable health benefits costs in the short term and long term
Small businesses need a solution to health benefits that allows them to recruit and retain employees, says Lindquist. Defined contribution allows them to keep all the good things about group health insurance, like the tax benefits, but on a controllable individualized basis.
4. You have limited time and/or personnel to administer health benefits
If you have limited time and personnel, Zane Benefits lists that DC health benefits can be set up online and takes five minutes to administer per month.
5. You want to get out of the health insurance business
DC health plans allow business owners to get out of the health insurance business, but still offer employee health benefits.
6. You want to give employees and their families access to the health insurance tax credits
The DC health benefit option allows employees and their family members to take advantage of health insurance tax credits.
7. You want to see more value in health benefits dollars
Because DC health plans costs less when compared to group health insurance premiums, businesses will see more return on their investment in health benefits.
8. Youve seen small business health insurance costs increase, and coverage levels decrease
A simple switch to DC health benefits allows employers to control health insurance costs. Also, employees coverage levels will go up, according to Zane Benefits.
9. You are open to using innovative and cutting edge solutions to achieve the same or better results
While not a new health investment option to employers, Zane Benefits projects that DC health benefits is a health coverage effort that will begin to gain traction among small and mid-size employers.
10. Your employees have diverse medical needs
Employers that offer a one-size-fits-all plan fail to meet the needs of their employees. With DC health benefit plans, Zane Benefits says that employees have access to diverse medical and coverage options.
