NEW STRATEGIC BENEFIT PLAN DESIGN - OLD IS NEW!
Posted on Mar 1 2010 at 11:02:30 AM in B2B
At our weekly meeting with affiliates that included - Vesta Worksite, Vesta h&l, and Vesta p&c - , a press release by Unum was brought to our attention. In brief, Unum announced that their Simply Unum division had rolled out a new "Benefit Credits" Plan Design that would be introduced nationally in 2010.
Our significant interest in this announcement by Unum is that our founding company, Vesta Ltd., co-sponsored a "Think Tank" beginning in 1995 to study and sponsor the utilization of "Benefit Credits" in what we called "Defined Contribution Plans" - as they applied to the integration of Core and Voluntary benefit choices. One of our group members shortened the name to "Def-Con"!
The "Big Claim" we, the Tink Tank, utilized to invite select Brokers to participate in 4 day seminars to introduce and discuss the Def-Con concepts and designs was: "We can assist you in delivering 'Tomorrow's Benefit Concepts Today'. We can save your client substantial Benefit Expenditures while Dramatically Increasing their 'Return on Invested Benefit Dollars'". We noted that Def-Con could do for Employee Benefit Plans what Defined Contribution did to Retirement Plans. These meetings, and the ongoing activities of the Think Tank, were in depth, interactive and extremely productive. These activities lead to "Field Testing" the Def-Con plan designs with the Brokers and their select clients.
In the most simplistic terms, Def-Con allows Brokers and Employers to:
- Allocate benefit "Credit Dollars" to products and services made available to eligible Employees.
- Forecast and Budget the Organizations benefit expenditures on an annual basis.
- Work more closely on Strategic Plan Designs for cost savings.
- Build a "menu of benefits"made available to the Employees to provide "choice".
- Value one choice over another to promote "Consumerism" and "Wellness".
- Promote Employee Education and Participation in the decision-making process.
- Empower the Employees and their Families
- Reduce the Time and Cost of "Benefits Decision-Making".
We complement Unum on resurrecting this valuable plan design concept. One of their subsidiaries, Colonial Life & Accident, co-sponsored our original Think Tank.
The purpose of today's blog is to begin a series of posts & discussions about Def-Con and this value-added concept. We will utilize this Blog, the Vesta Worksite Blog, and the Vesta h&l Blog - as well as several Social Media resources - to disseminate information. We invite you to join our Linkedin Group, "Insurance Forum" for additional Discussions & Comments.
At a time when Health Insurance Reform & the Benefits Marketplaces are in turmoil, we firmly believe it is an appropriate time to bring the concept of Def-Con back to life!
Please share your thoughts with our community and Have a Great Week!