For Immediate Release – December 2011

Small employers are increasingly canceling group health benefits for 2012.  Your Wellness n Health (http://www.yourwellnessnhealth.com) is partnering with leading administrators to offer clients defined contribution solutions with new private health exchange technology.

Recent estimates suggest almost 50% of U.S. small businesses with less than 50 employees do not offer group health insurance to their employees. This figure is expected to greatly increase in 2012:  The key reasons are:

1. Employer Cost Requirements – Insurance companies require a minimum percentage of the premium for each employee that must be paid by the employer, or the entire plan is cancelled;

2. Employee Participation Requirements – Insurance companies require a minimum percentage of employees must join the group plan, or the entire plan is cancelled; and

3. The high Cost per Participant – Group health plans for 2012 are facing the greatest increase in the history of U.S. health benefits, due to increasing health care costs and new coverage requirements imposed by ACA (Health Care Reform).

Your Wellness n Health’s solution provides a partnership and a technology platform that directly addresses each of these issues.

With the Your Wellness n Health (“YWNH”) you have an alternative health insurance solution provides:

  • No Employer Contribution Requirement – The company sets a fixed dollar amount that it wishes to contribute to each class of employee.
  • No Employee Participation Requirement – The company sets its own eligibility and participation requirements. The plan can be active even if only 1 employee participates.
  • Much Lower Cost Per Participant with No Employer Minimum Premium Contribution – Available alternative insurance health policies typically cost less than half the cost of equivalent group coverage for healthy employees, and new options, such as PCIP, are now available for employees who don’t qualify due to pre-existing medical conditions.

All defined contribution plans must include all legal documentation to ensure compliance with applicable regulations.  Our partners provide an IRS, ERISA, and HIPAA-compliant platform that includes electronic plan document creation and employee election processes.

“What makes our alternative health insurance solution unique is that once an employer determines the defined contributions, Your Wellness n Health partners work with the employees to select the best alternative health plan available in their market,” says Frank Gifford of YWNH.  The employer’s role is now simplified to reimbursing employees using their existing payroll system, which typically takes less than a few minutes per month, sponsoring the new defined contribution plan and supporting effective healthcare consumerism.

Peter Orszag, former Director of OMB, recently posted, “..the state insurance exchanges created under the new federal health-care law will make the basic idea of a defined-contribution health plan more prevalent, and thus may speed its adoption. The regulations written to carry out the new law will determine how things play out. If defined-contribution plans that are sufficiently generous count as employer-based coverage — as is generally expected — the tread toward such plans will probably accelerate.” (see the full quote is available here.)

One of the more exciting features of our alternative health solution is its seamless integration and compliance with massive up-and-coming health reform requirements. Contact us today to learn more about:

  • The significant cost savings opportunity (15 – 20%) today
  • The significant financial incentives in the upcoming years for employers to switch to defined contribution (“alternative health insurance solutions” ) plans
  • The improved employee satisfaction with the design.

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