Sean Rekemeyer
Regional Manager
(817) 277-9000

NPN #1329285

Option 2
Employer Defined Contribution Plans



Employers will continue to use benefits as a way of attracting and keeping quality employees. But much like the change we saw in the 1970’s when businesses moved from pensions, a defined benefit model, to 401K’s, a defined contribution model, more and more employers who want to fix their health benefits costs will move to a defined contribution model.  The current estimate is that 75 million employees will move from employer sponsored health plans to a defined contribution model in the next 5 years.

Defined contribution plans include a mixture of Health Reimbursement Accounts, Premium Reimbursement Accounts, and Flexible Spending Accounts all defined in IRS code Sections 125, 105 and 106p that allow employers and employees to contribute tax free dollars towards premiums and health care costs.   ​​

These plans offer employers a way to fix their health insurance costs while offering employees the opportunity to select coverage from any number of carriers.  Employees can pick plans that best fit them and their family’s needs without being limited by an employer defined set of benefits and pay for benefits and health care expenses with pretax dollars.​​

​​We have a number of Third Party Administrators (TPA) that we recommend to set up the appropriate IRS compliant plans.  Health and Human Services,  the Department of the Treasury and the IRS  continue to modify regulations in regards the Affordable Care Act. To get a specific recommendation based on your situation, the States you operate in, and the current IRS regulations,  please contact your ACA advisor.