Philadelphia, PA -- (SBWIRE) -- 11/05/2012 -- The Asset Benefit Group today announced the launch of a PRIVATE EXCHANGE based technology platform that provides employers and employees the ability to participate in one of the fastest growing trends in health insurance – Defined Contribution Health Plans. Like the 401k transition of years ago, this trend will continue as group insurance plans become less and less viable due to cost and regulations.
According to Tom McMahon, President of The Asset Benefit Group, a defined contribution health plan is an important alternative to traditional group health plans for those who can no longer afford or qualify for them and these plans are growing rapidly in popularity. Rather than paying all or a portion of a group plans premium, under a defined contribution health plan an employer can offer a fixed dollar amount each month (or no contribution at all or IF PREFERRED) for employees to use to pay for their own individual health insurance policy or for other medical expenses such as doctor visits, dental insurance, and prescription drugs, often on a pre-tax basis. These individual policies are frequently ½ the cost of a comparable group plan.
Mr. McMahon said that this approach allows even the smallest of businesses to offer their employees quality health-related benefits, while maximizing the IRS approved benefits of tax savings for both the employer and employees.
Mr. McMahon said that employees participating in a defined contribution program through their employer are directed to the private exchange website where they can compare and select a policy from among a variety of individual health plans being offered by health insurers in their area. He said that the private exchange is a tool that provides employees with more choice and makes it possible for agents to more effectively provide services to large numbers of individuals and their families rather than employer groups. Employees can choose to be connected to live experts, licensed in all 50 states, who can provide them the best options for their family regardless of pre-existing conditions or budget. Experts will look for the right plan in 4 different markets:
- Personal health plans – all the major carriers, medically underwritten
- Short Term Medical Plans – fewer UW requirements, lower cost
- State and Federal Risk pools – must qualify, guaranteed issue
- Limited benefit plans – low cost options, guaranteed issue
The Private Exchange is not limited to just health insurance solutions, although that is the greatest concern for most employers and employees. They have experts available in life insurance, long term care insurance, Medicare supplements, voluntary benefits (accident, critical illness, hospital indemnity), and even property and casualty insurance.
Forward thinking employers have already begun adopting The Asset Benefit Group solution to their benefits challenges. Early adopters to this model are already finding it to be the perfect solution especially if they had given up on offering their employees any type of benefits. Now they can offer access to health care benefits at 30% to 80% less than they are paying now.
More information about defined contribution plans and The Asset Benefit Group services can be found at http://www.theassetbenefitgroup.com
About The Asset Benefit Group
The Asset Benefit Group is a health insurance broker, based in Philadelphia, PA, that offers Defined Contribution Health Plans and other non-traditional programs aimed at reducing health care costs for employers and their employees.
The Asset Benefit Group
917 Moore Street
Philadelphia, PA 19148