Flexible Benefit Service Corporation Rallies Support for Defined Contribution Health Benefits
ROSEMONT, Ill. (Dec. 13, 2012) – Flexible Benefit Service Corporation (Flex), a leading provider of tax-advantaged and consumer-driven health plans (CDHPs), is advising producers to be proactive in educating their clients on defined contribution health benefits. Growing in popularity alongside insurance exchanges, defined contribution health plans allow employers to establish their own budget and assist employees with health care expenses through tax-free contributions.
While the debate on public exchanges for 2014 continues in various states, a real market is emerging today for defined contribution health benefits and private exchanges. A recent study by the Employee Benefit Research Institute indicates that employer health care issues will be addressed with an “exchange / fixed contribution approach” and may be an ideal solution for the group marketplace. Moreover, the 2012 Employer Health Plan Study by J.D. Power and Associates indicates that nearly half of employers “definitely will” or “probably will” switch to defined contribution health benefits in 2013.
The recent Workplace Benefits Transitions Conference held in Chicago focused on the changing workplace benefits marketplace and featured defined contribution funding programs as key drivers to an emerging employee health benefits delivery model. President of Flex, John DiVito, was a featured expert at the panel on “Flexible Compensation & Defined Contribution Benefit Plans” where he urged health insurance producers to take control in an evolving marketplace.
“Defined contribution plans are the future of how employers will offer benefits to employees,” said John DiVito. He added, “They give producers the opportunity to have a different kind of conversation with their employer clients offering sales strategies for full-time, part-time, individual, family, retiree and every type of coverage in between. Employers need guidance now, and producers need to be proactive in distributing this concept to remain competitive in the marketplace.”
Flex offers the InsureXSolutions™ private insurance exchange that uses employer-sponsored defined contribution plans. Available in select markets, InsureXSolutions is scalable for any size business, and is ideal for employers not currently offering health insurance. Employees use the InsureXSolutions online marketplace to shop for and purchase individual health, Medicare, short-term and vision insurance. They then utilize the defined contributions funds to get reimbursed for qualified health care expenses.
To learn more about InsureXSolutions, visit http://www.insurexsolutions.com/ or call 888-353-9178.
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About Flexible Benefit Service CorporationFlexible Benefit Service Corporation (Flex) is a leader in the health insurance and benefits administration marketplace. Since 1988, Flex has continuously offered cost-effective health care solutions for producers, employers, employees and individuals. Through their consumer-driven strategies, tax-advantaged programs and insurance offerings, Flex serves as a full service general agency and benefits administrator. The comprehensive Flex product portfolio includes flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), health savings accounts (HSAs), transit reimbursement accounts (TRAs), COBRA administration and more. Flex also blends its in-house expertise from both divisions to offer a private insurance exchange showcasing integrated resources and innovative technology. Learn more at flexiblebenefit.com.
Media Contact
Nick Severino, Director of Marketing
Flexible Benefit Service Corporation (Flex)
888-353-9178 | nseverino@flexiblebenefit.com
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