Health Insurance Resource: Defined Contribution Health Plans

Eide Bailly Employee Benefits, an industry leader in defined contribution health plans, has announced its fully integrated online defined contribution solution. The Eide Bailly private exchange will provide a simple but complete exchange solution which includes a benefits enrollment system, integrated with pre-tax reimbursement accounts.

The Eide Bailly private exchange was designed through the partnership of Eide Bailly Employee Benefits and Evolution1, the nation’s largest cloud computing healthcare solution for employee benefits. As frontrunners to design a comprehensive exchange, Evolution1 and Eide Bailly Employee Benefits have created the Eide Bailly private exchange solution to provide innovative employee benefits solutions for both employers and employees.

With the Eide Bailly private exchange, human resources, benefits and payroll procedures are simplified making the enrollment and administration of multi-carrier plans stress-free. The private exchange solution is executed and maintained by Eide Bailly Employee Benefits. Clients gain high-quality technology, an efficient enrollment method, and exceptional service, with Eide Bailly’s private exchange.

To learn more visit our website.

Required Employer Notice to Employees

The Department of Labor released information about the required notice by employers to employees about the exchange.

From the Department of Labor Website:
Employers are required to provide the notice to each new employee at the time of hiring beginning October 1, 2013. For 2014, the Department will consider a notice to be provided at the time of hiring if the notice is provided within 14 days of an employee’s start date.

With respect to employees who are current employees before October 1, 2013, employers are required to provide the notice not later than October 1, 2013.

The notice must be provided in writing in a manner calculated to be understood by the average employee. It may be provided by first-class mail. Alternatively, it may be provided electronically if the requirements of the Department of Labor’s electronic disclosure safe harbor are met.

Recent Health Care Reform Questions

We’ve been receiving many questions via our recent Advanced Health Care Reform webinars. Below is an example of the question and our response.

Can the HSA amount the employer contributed be counted toward the cost of affordable/adequate healthcare to get the 9.5%?

Question: Can the HSA amount the employer contributed be counted towards determining whether a health plan is affordable (i.e. whether the employee premiums exceed 9.5% of household income)?

Response: No – HSA contributions are for out of pocket expenses and cannot be counted toward determining whether a health plan is affordable (i.e. whether the employee premiums exceed 9.5% of household income).

Question: Can the HSA amount the employer contributed be counted towards determining a health plan’s actuarial value?

Response: Yes – “first dollar” employer funded HSA contributions (i.e. employer HSA contributions which allow the employee to use those funds toward deductibles right away as out of pocket expenses are incurred) will count towards determining a health plans underlying actuarial value

Additional Insight: A health plan with a $0 deductible will have the same AV percentage as a plan with a $1,000 deductible that has an associated HAS or HRA with a current year $1,000 employer contribution – which comes out of the regs (204.19 | see attached).