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 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.
Plan A = $560 monthly premium
Plan B = $330 monthly premium
Plan C = $220 monthly premium
This amount is up to the employer, but it must be a minimum of $110 (50 percent of the lowest premium) in this example.
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Contact us to learn more about Providence medical plans or request a quote.
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