“Employers are looking for ways to manage the cost of providing retiree health coverage, and the retiree community needs solutions that are easy to understand and manage to ensure they get the full value of their benefits packages,” says Acclaris CEO Dean Mason. “Defined contribution plans help employers minimize costs while easing the reimbursement burden on retirees and giving them a broader choice of carriers.”
Under the retiree-defined contribution plan, the employer allocates an annual dollar amount for each plan participant. This amount is typically based on years of service at retirement, the firms say. For example, at $100 per year of service, a retiree with 25 years of service at retirement is provided with $2,500 per year to use to purchase health insurance in the individual market.
These dollars are put into a reimbursement account and are used to reimburse retirees for the premiums they pay for qualified health insurance coverage they obtain in the individual insurance marketplace. Under such a plan, retirees enroll in the health plan that best meets their needs and pay premiums directly to the insurance company, then submit the proof of payment in the form of a claim and receive reimbursement up to the monthly or annual limits of the defined contribution plan.
Acclaris delivers both the technology and services needed to operate the claims reimbursement platform and call center that integrate seamlessly with SelectQuote Senior’s operations.More information about SelectQuote Senior is at www.selectquotesenior.com.