Employer Defined Contribution

How does this work?

With a defined contribution, your out of pocket expenses are controlled.  You define a fixed contribution amount.  This gives the employee the ability to choose the benefits that are important to them.

With the assistance of a Third Party Administrator, the employer is assisted in organizing the defined contribution by using an online administrative platform.  The employer decides an amount to “contribute”.  The employer is assisted in setting up the online portal the employees will visit.  The employees then visit the portal online to spend their defined contribution on the benefits they want to have.

Employers are now beginning to allow their employees to shop for their own health insurance coverage so the employees don’t just have 1 or 2 plans to choose from.  Instead, they define a contribution amount and allow their employees to choose which benefits they want.  The contribution in a specific dollar amount becomes the benefit, and the employees (with guidance from a licensed agent) can then go to a private exchange and shop for the best plan themselves.

Choice is a key component of a defined contribution strategy.  Employees will need to have access to plans that have government subsidies, along with the private “off exchange” plans, plus supplementary benefits such as dental, vision and life.  This option allows the families to control and choose what’s best for them.

Benefits to the Employer

♦ Get out of the insurance business

♦ Reduced Administration costs

♦ Simple Renewal Process

♦ Manage contributions and payroll deductions through an online portal

♦ FICA savings

Benefits to your Employees

♦ All Nevada health plans and metal tier levels available, with/without Government Subsidy

♦ Licensed Private Exchange Agents assisting your employees

♦ Employees manage their benefits

♦ Access tax advantaged plans like HSA’s and FSA’s

♦ Easy access to defined contribution account online anytime

♦ FICA/FUTA Savings Plus Income Tax Savings