Defined Contribution

Jul 14, 2015

  1. mschlange

    mschlange Super Genius

    Likes Received:
    With health care reform has anyone tried and been successful in marketing to small business about doing a flat contribution for each employee and let the employee create there own benefits?
    Some cases employees may get a better rate in the Marketplace.
    Cross selling is the key and increased commissions.
  2. TN_agent

    TN_agent Guru

    Likes Received:
    If by "flat contribution" you mean a raise to the employee that they are fit to use as they please to either obtain coverage for themselves or their family, or blow (their choice), then yes.

    "Flat contribution" that they must use to purchase health insurance or they don't get it, no.

    The first option has been more successful in businesses where they are not paid very well, at least in my state (lots of employees with families under 250% of FPL). Bonus if the employer pays little or none of the family rate but still offers it. An engineering firm, forget about it.
    TN_agent, Jul 14, 2015
  3. cadylou

    cadylou Guru

    Likes Received:
    Many of my small groups (very small) went to individual insurance this past year now that everyone is able to qualify and because their rates skyrocketed.

    They raised payroll, but even with amounts that we thought were adequate for now--it may not be enough. I see this as potentially an issue going forward if some of these large rate hikes that are predicted come to be. The people I worked with in these smaller companies really didn't qualify for a subsidy, so over time, I think they're in for a rude awakening. . . .Sold most of these people Health Savings account plans, since they can at least benefit from contributions to their HSA over time via tax benefits & flexibility to use the funds for dental, vision, etc.
    cadylou, Jul 14, 2015