Best Fit defined contribution

When you choose the defined contribution option with Providence Health Plan, you’re able to offer your employees a choice of two or three plans instead of just one.

The advantages of a Best Fit option for the employer include:

  • Eliminating the burden of having to choose one plan that satisfies all employees
  • Better prediction and control of insurance costs, regardless of fluctuations in insurance rates and employee census
  • Greater employee satisfaction with benefit choices

The advantages of a Best Fit option for employees include:

  • Greater control, involvement and choice in benefit selection
  • The ability to stretch benefit dollars by choosing lower-priced options
  • Greater satisfaction with coverage that they've chosen to best meet their needs

The plans you choose must meet a few guidelines:

  • Groups with one to four benefit-eligible subscribers can offer up to two plans.
  • Groups with five or more benefit-eligible subscribers can offer up to three plans.
  • The employer contribution must be at least 50 percent of the employee-only rate for the lowest-cost plan.
  • If you offer Connect or Choice plans, you also must offer at least one option that includes the Signature network (Total Enhanced, Total, Balance, Standard or HSA Qualified).

Here's an example:

ABC Company has defined a benefit-eligible employee as someone who works 40-plus hours per week. This group has nine employees, six of whom are eligible for benefits, so the group may choose up to three plans.

Plans chosen:
Plan A = $560 monthly premium
Plan B = $330 monthly premium
Plan C = $220 monthly premium

Employer contribution:
This amount is up to the employer, but it must be a minimum of $110 (50 percent of the lowest premium) in this example.

For more information

Contact us to learn more about Providence medical plans or request a quote.

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