VALUABLE CHOICES IN GROUP HEALTH & LIFE PLAN DESIGN!

At our weekly meeting of affiliates that included - BenefitPlace, Vesta Worksite, and Vesta p&c - we continued our discussion about Benefit Credit/Defined Contribution benefit plan design strategies.  Hence forth, we will refer to these strategies and plans as "Def-Con" based on the name we gave them during a Benefits related "Think Tank" we co-sponsored in 1995 and beyond.   For a review of this discussion click on: BenefitPlace Blog.

Def-Con offers a number of unique opportunities to the H&L marketplace and those who have shaped Employer Based Group Plans for years - the Employee Benefit Specialist (EBS).  As you will note from the BeneitPlace Blog, Def-Con strategies:

• Are a strategy implemented by Employers, generally working with informed Brokers and Consultants, allocating "Benefit Credit Values" to the actual "Premium Cost" of plans offered to the Employees.  It must be emphasized that the Premiums and the Credits are not necessarily equal!  This differential in provides an opportunity to encourage Employee participation in one plan over another, ie. one health plan choice over another.
• Provide Employers an opportunity to select a menu of "Best-in-Class" Carriers & Benefit Plans to offer Employees with an emphasis on "Choice".  The "Choices" permit Employees to select plans from a variety of categories that best meet their individual and family's budget and needs.
• Provide Employers the ability to budget the cost of benefits in current and future years.
• Generate cost-savings for the Employer and Employees - if carefully designed.

Def-Con provides the EBS incredible opportunities to accomplish the above, including:

• Employers are given greater Budgetary Control in the initial and following years
• The benefits decision-making process becomes more focused on the selection of "Best-of-Class" programs, products, and services.
• Price, while important, becomes secondary to meeting the Needs of Employees and their Families.
• Multiple types of plans may be offered to meet the Specific Needs and Price-Points of Employees and their Families.
• Def-Con can implemented with Fully Funded and Self-Funded Groups - ideal for Self-Funded Groups.
• The Def-Con plan design can include Traditional Group Core Benefits, ie. Health, Dental, Vision, Term Life, etc. and Worksite/Voluntary Plans.  This combination provides the Employer and Employees the greatest menu of "Choices". 
• The plan can be integrated with existing "Tax Advantaged Plans" including: Premium Conversion, Medical Medical Reimbursement, Dependent Care Transportation & Parking, HSAs, 401(k), etc.
• The EBS can work with experienced Worksite Benefit Specialists (WBS) to select the "Best-of-Class" in Carrier and Plan choices.  The Plan Design and menu of Choices will have Multiple Carriers and Plans to meet the needs and price-points of  the Employees and their Families.
• An experienced  WBS can further assist by providing access to choices for the extremely important Education, Communication, Enrollment and Data Management Processes.
• A more Secure Future with the client.  While Carriers and Plans may come and go - if they do not continue to meet the needs and price points of the Employers and Employees - the EBS is well positioned as the trusted advisor for building and reviewing the menu and providing enrollment services. 

The purpose of today's blog is to continue the discussions about Def-Con and this value-added concept.  We will utilize this Blog, the BenefitPlace Blog, and the Vesta Worksite Blog - as well as several Social Media resources - to disseminate more information.  We invite you to join our Linkedin Group, "Insurance Forum"  for additional Discussions & Comments. 

At a time when the Health Insurance and Benefits Marketplaces are in turmoil, we firmly believe it is an appropriate time to bring the concept of Def-Con back to life!  

Please share your thoughts with our community and Have a Great Week!