Employers can leverage ConnectedHealth’s Private Exchange to implement a defined contribution program for their employees. Employers can cap their healthcare expenses at a pre-determined amount, while still offering the health care coverage that their employees are looking for.
ConnectedHealth offers a complete end-to-end solution for employers. Using the combined ConnectedHealth Platform, employees shop for health care coverage in an online exchange, using technology to help them make educated insurance decisions. They know, upfront, the costs they’ll likely have with each health plan option and can make their own decision about how much risk they want to take on for their healthcare expenses. Employees use pre-tax dollars that their employer set aside in a spending account to the extent they would like to cover their premium or other allowable health care expenses.
The employer’s implementation of the Defined Contribution program is easy. They simply determine their contribution level in the pre-tax benefit plan, and then communicate the program to the employees just as they would during open enrollment of an old-fashioned group benefit plan.
The employee’s part is similarly straightforward. They shop and apply for their desired health insurance plan. After they are accepted and have their first premium statement, they can enroll in the appropriate pre-tax reimbursement plans to get reimbursed for that premium amount, to the extent the plan allows, or use that balance for any eligible health care expenses.