Plan Redesign - Building Materials - 1993

After years of low claims and rising costs a building material distributor replaced their defined benefit medical and dental plan with a health spending account and contributed $150 monthly per employee. The life insurance and short-term disability insurance was not replaced.

Observations

  • Positive feedback from employees.
  • Annual refunds average 4-months contributions.
  • Long-term disability insurance is available and should be implemented.

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