An Affordable Alternative To Group Health Insurance:
As group health insurance costs continue to rise, employers are looking for ways to offer health benefits at a lower price. DefinedContributionNow! Is a concept often referred to as a defined contribution health plan. It allows an employer to name its price on its benefits offerings, rather than paying the costs to provide a specific group health plan (a "defined benefit"). Employers instead fix their costs by establishing a monthly dollar amount employees choose how to spend.
Employers can now make available a tax-free monthly allowance that employees use to purchase their own individual policy directly from a carrier or independent licensed health insurance agent.
How can I implement this at my company?
Defined Contribution is current a term used for 401Ks Old Pueblo Benefit Advisors uses the Defined Contribution Now! System. Here’s how it works:
- Step 1—The employer creates a plan online and enrolls employees. Employees get their own user names and passwords.
- Step 2—Employees individually purchase their own policies from a menu of benefits, pay the bills themselves and add their policy choices to their online account.
- Step 3—Each month the administration system instructs the employer to make pre-tax withholdings via payroll and tax-free reimbursements for each employee in the plan.
Great for your Employees:
- Freedom to choose any policy that fits their need and lifestyle
- Direct relationship with insurance company and they own the policies
- 20-40% savings in income and payroll tax savings on policy costs
Painless for You:
- Affordable alternative to group health plans
- Ability to fix benefit costs—no contribution required
- Not subject to discrimination rules or participation rules
- Painless administration for reimbursing employees through payroll
Call Us at (888) 977-5901 to Get Started!
This program is offered through Old Pueblo Benefit Advisors, LLC and all Administration costs are provided in a proposal format. These fees are nominal and the savings in FICA taxes alone makes the program worth it! Simply provide an employee census of those wanting to participate.