Defined Contribution Health Plans in North Carolina

Due to the annual cost increases associated with traditional employee health benefits, a new form of health benefits, called a defined contribution health plan, is quickly gaining popularity in North Carolina. Defined contribution health plans allow North Carolina employers to offer health benefits to employees without offering a traditional group health insurance plan. 

Rather than paying the costs to provide a specific group health plan (a "defined benefit"), North Carolina employers instead fix their costs by establishing a monthly dollar amount (a “defined contribution”) that employees choose how to spend. Employees participating in a defined contribution health plan in North Carolina can request tax free reimbursement for their out-of-pocket medical costs and personal health insurance expenses.

Recruiting and retaining key employees is important to every company and a company's health benefit program is a critical part of the compensation it offers to its employees. 

The general concept of a defined contribution health plan in North Carolina is that a company gives each employee a fixed dollar amount that the employees choose how to spend. Typically, employees are allowed to use their defined contribution to reimburse themselves for individual health insurance costs or other medical expenses such as doctor visits and prescription drugs. 

Defined contribution health plans in North Carolina are programs that allow employees to be more involved in their health care choices.

Are you the employer of 20 to 75 people? Contact Health Benefits US today to learn how you can save thousands of dollars without negatively affecting your employee's health situations.