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Orlando Florida Defined Contribution Health Insurance Quote

Insurance providers heard their constituents’ calls for greater choice in their medical care, and in response some carriers have implemented a defined contribution health plan. This alternative to traditional health insurance affords employees to have greater choice in their healthcare. Employers fix their insurance costs by setting a monthly dollar amount that employees can choose how to spend. This monthly dollar amount is the defined contribution.

Employees who participate in the defined contribution health plan are reimbursed for medical expenses from the defined contribution. The employees have greater choice in how and where they spend their funds. Reimbursements can typically be used to cover prescription medications, physician visits and individual health insurance plans.

Top three benefits of defined health care plans:

  • Employee Choice: Employees have the autonomy to choose providers and personal insurance to fit their needs.
  • Employer Savings: Reduce the cost of current group insurance without decreasing benefits
  • Employee Savings: Save 30% on health insurance premiums
  • Fixed Cost: By allocating fixed monthly contributions, employers fix their health insurance costs, which helps with budgeting and planning.

In Florida, is legal for employers to offer employees a defined contribution health care plan in lieu of group health insurance. For employers to remain in compliance, there are several guidelines, which we will go through with you. To highlight a few:

  • Use ERISA and HIPAA-compliant platforms
  • Stay neutral, avoid endorsing individual health insurance plans
  • Limit your role to confirming whether a medical expense is qualified and reimbursing employees

Defined contribution health plans employees freedom of choice for their health care. The plans save companies money, and help for future financial planning.