Regardless of the politics surrounding The Affordable Care Act, healthcare reform has brought a lot of attention to opportunities for employers to better serve the needs of their employees. It may be difficult to identify what opportunity is the best fit for you, but Sonus Benefits aims to give you the guidance you need to make an informed decision. We\u2019d like to shed some light on Defined Contribution, one of the features available to employers who are opting to enroll in private exchanges as a means of providing health care for their employees. Let\u2019s investigate the basic framework of a private exchange and whether or not Defined Contribution is the best choice for your team.<\/p>\n
It\u2019s an online marketplace for buying health insurance and other related products. Unlike a public exchange, which is owned by the government, private exchanges are owned by a private- sector company or non-profit. Just think of it like shopping online for your groceries, but instead, you\u2019re selecting the health coverage options that best suit your lifestyle.<\/p>\n
Give\u00a0this blog pos<\/a>t a read. It gets much more specific about the public and private exchange options that are available for you.<\/p>\n It\u2019s kind of like an allowance, but for insurance. An employer sets an amount of money to be given to employee each month (or year) and the employee spends that money to custom create a health benefits plan according to their personal preferences. The employer can establish rules surrounding how that money can be used, but in general, where that money gets utilized within the private exchange is up to the employee.<\/p>\n Absolutely! Let\u2019s say an employer gives each employee $350 a month for health insurance. The employer can decide that $300 of those dollars should be spent on health insurance and the remaining $50 can be spent on other benefits options like disability insurance, dental insurance, life insurance, or vision insurance.<\/p>\n The employee then heads to the online private exchange and decide what sort of combination of coverage best matches their needs. It becomes the choice of the employee, for example, whether they\u2019d like a high deductible or low deductible. The end result is completely personalized health care coverage.<\/p>\n That\u2019s one way to look at it, but no employee will have to navigate creating a customized plan alone. There are advisors, like the fine people at Sonus Benefits, who are available to help coach employees through their decisions and find what will really work best for them.<\/p>\n You absolutely still can. Defined Contribution give employers increased control over their benefits plan. You can decide how you\u2019d like to spend your money and where.<\/p>\n It eliminates the pain that comes from trying to force a one-size-fits-all solution on a group of people. Everyone has unique needs and Defined Contribution puts control in the hands of the people who know those needs best, individuals.<\/p>\n Employers will see increased control over the administrative burdens of providing health coverage. There are no more surprise increases in rates or decreased range of coverage. Employees will experience greater freedom to maximize the impact of their benefits plan.<\/p>\n Overall, you\u2019ll notice increased satisfaction with insurance options for both employees and employers.<\/p>\n You can visit\u00a0our private exchange portal<\/a>\u00a0on our website and watch informational videos about Defined Contribution and whether or not it is the right option for you.<\/p>\n You can also\u00a0make contact<\/a>\u00a0with a member of\u00a0our team<\/a>\u00a0and we\u2019ll walk you through your decision.<\/p>\n","protected":false},"excerpt":{"rendered":" Regardless of the politics surrounding The Affordable Care Act, healthcare reform has brought a lot of attention to opportunities for employers to better serve the needs of their employees. It may be difficult to identify what opportunity is the best fit for you, but Sonus Benefits aims to give you the guidance you need to…<\/p>\n","protected":false},"author":8,"featured_media":647,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_mi_skip_tracking":false},"categories":[5],"tags":[],"acf":[],"yoast_head":"\nWhat is Defined Contribution?<\/strong><\/h2>\n
Can I have an example?<\/strong><\/h2>\n
That\u2019s a lot of responsibility!<\/strong><\/h2>\n
What if, as an employer, I still want to offer 100% coverage for something?<\/strong><\/h2>\n
What are the benefits of Defined Contribution?<\/strong><\/h2>\n
Where do I sign up or learn more?<\/strong><\/h2>\n