Multiple Plan Offering
Give your employees more flexibility by offering up to three health plans with a defined contribution option.
Advantages for the employer include:
- Eliminating the burden of having to choose one plan that satisfies all employees
- Greater employee satisfaction with benefit choices
Advantages for the employee 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 enrolled subscribers can offer up to two plans
- Groups with five or more enrolled 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
Here's an example:
ABC Company has defined a benefit-eligible employee as someone who works 40+ 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.