Creating a Defined Contribution Plan for Your Business

It’s easy for you to offer your employees health benefits without losing control of the costs. And you’ll have the peace of mind that you’re helping your employees get the insurance coverage they need.

How it works

Setting up a Defined Contribution benefits plan is straight-forward.

Step 1: As the employer, you create a plan online and enroll your employees.

  • You specify the contribution (via payroll deduction) you want to make every month to each employee’s PRA account.
  • Employees can use the money in the PRA account to pay for a monthly insurance premium.
  • Each employee gets his or her own username and password.
  • Employers pay a small administrative fee based on the number of employees added to their account. The tax savings typically cover the cost of the fee.

Step 2. Employees choose their own personal health insurance plan. ConnectedHealth can help them find the right plan for their preferences and their budget.

  • Your employees purchase their personal insurance plans themselves.
  • Once they’ve purchased the plan, they add their policy to their PRA account online.

Step 3. Each month, employees are reimbursed, tax-free, through the PRA account.

  • Reimbursements can cover personal health insurance premiums or other eligible medical expenses not covered by their health insurance.

You can get your Defined Contribution set up in about 25-30 minutes. When you click Get Started, you’ll be taken to our partner’s website to begin.

 

Check out our Frequently Asked Questions to learn more.