The End of Employer-Provided Health Insurance: Why It's Good for You and Your Company

Chapter 15How to Implement a Defined Contribution Solution

Once you have conducted the in-depth financial analysis described in Chapter 14, you have all the information you need to implement a defined contribution solution. Keep in mind you want to utilize a defined contribution solution provider to help you implement your company's program and administer it on an ongoing basis. For help selecting a defined contribution provider, see Chapter 16. In this chapter, we will walk you through how to plan for and implement a defined contribution solution.

Is Your Company Ready for Defined Contribution?

Regardless of your company's current health benefits offering, you should answer the following general questions before proceeding with a defined contribution solution. If you answer yes to these questions, then defined contribution is a terrific fit for your company.

• Does your company have one or more employee(s)? Defined contribution healthcare works for companies of any size. However, if you do not have any employees, defined contribution may not work for your company.
• Do you have a budget to spend on employee healthcare? You must have money available to spend on employee healthcare. If you are unwilling or unable to set aside money each month, defined contribution will not work for your company.
• Are you looking to grow your company size or retain your existing staff? The primary purpose of a defined contribution program is to recruit and retain staff. If you are looking to grow ...