Defined Contribution Health Plans

What is a Defined Contribution Health Plan?

A “Defined Contribution Health Plan” is the newest thing in health insurance.  Thanks to new elements of ACA (the Affordable Care Act, aka Obamacare) a “private” market place exchange product has been created.

Employers Contain Cost and Employees Get the Best Plan

Employers set a budget of how much they want to spend on benefits. They “contribute” money to employees and employees choose the coverage they need. Benefits are provided from a selection of group health, dental, long term disability and life insurance plans.  Since employees have several plans to pick from, all employees can get the coverage that fits their individual health needs, not just one their employer picked for them.

Employer Controls Cost

  • Set a fixed budget for benefits this year and into the future
  • Most companies save 10-30% in the first year alone
  • Streamline administrative tasks

Employee Satisfaction Increases

  • Empowers employees with knowledge and choice
  • Engages employees in their healthcare
  • Provide better overall coverage balance.

Sound Good?

Contact an AEPG® benefits expert to help you navigate the new marketplace and assist you in selecting the options might be the right fit for you and your employees.


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