How It Works

The technology has caught up with the concept.

Defined contribution is a strategy that has been around for many years. Most employers are familiar with the concept… but now you can apply it to your employee benefits package. The program is available for employers with 10 or more employees.

You decide on an insurance “allowance” that fits your budget.

Most employers will use the prior year total employee benefits expense as a starting point. You will be presented a range of options showing how the money can be allocated. This is the beginning of a fixed healthcare budget. Gone are the days of accepting large increases, changing the deductible, or switching carriers because of a “one size fits all” approach.

Your employees know exactly what you are contributing.

There is an unfortunate truth with employer healthcare costs – employees are not aware of the vast amount of money that is spent each year. You can effectively change this by giving them the money and allowing them to pick what they want.

Your employees choose the coverages that fit their needs.

Employees access a benefits portal that has been populated with their information. The pre-selected plan designs are available for them to compare coverages, prices, and can even make recommendations based on their individual needs. The money you are contributing will help them make a decision based on their personal budget. An educated, benefit consumer is born.

The portal is available year round for employees to log-in to learn about their coverage, update personal information, and take control of their benefits.

I’m concerned my employees will not adapt to this change.

The top concern we hear from employers is that their employees won’t know how to use the portal, and therefore, won’t be able to adapt. You will be surprised.

JJAN helps you make this transition smoothly. We engage with employees face-to-face to show them how it works. We help employees log-in, teach them how to compare plans, show them how much money is being spent, and guide them through the portal until their elections are made.

An empowering survey that may change your business…

There was a recent study done by one of the premier ancillary benefit carriers in North America. The survey was sent to the HR Departments and CFOs of mid-large customers asking, “How much do you spend on your employees for benefits each year?” The average response they received was $10,000.

Then, a survey was sent to the employees of those same companies. They asked, “How much does your employer spend on your employee benefits each year?” The average response received was $3,000.

The shift to Defined Contribution was born. Why not just give the money, and let them buy what they want.

Request a Demo right now to schedule a demonstration that will teach you:

  1. How the Defined Contribution approach can help you fix your healthcare costs
  2. How your money can be allocated among employees
  3. What “Private Exchange” options are available to you
  4. What coverage options are available
  5. How can you can manage enrollment and eligibility changes throughout the year
  6. What information is needed to make it work
  7. How we communicate the value to employees so the transition is favorable
  8. How the enrollment process works for you and the employees
  9. What the portal will look like to the user
  10. How it can be the best decision you make for you and your employees

Defined Contribution, A 9 Step Process


This PDF includes information on how to begin the process of transitioning to defined contributions.

Need help? That's why we're here.

Request A Call

Request A Call

We’d be delighted to assist you with any questions you may have about the changing regulatory environment, insurance, retirement benefits, and what we can offer you.

Request A Visit

Request A Visit

One of our team members will meet with you personally to demonstrate how a defined contribution approach can work for your company and employees.

Get Educated

Get Educated

Our Learning Center provides a wealth of free information and resources on defined contribution, healthcare reform, and other relevant topics.