Employee benefits have changed significantly through the years. Today, employees expect more than just basic Medical coverage. They want choices, flexibility, and benefits that fit their lives. You want a way to offer all of it without losing control of costs.
That’s where Defined Contribution comes in.
With CaliforniaChoice, you can offer employees more health plan options while keeping your budget predictable and administration simple. Here’s a reminder of why Defined Contribution continues to work so well for small businesses.
How defined contribution health benefits work for your team
1) Control your health insurance contribution strategy
Defined Contribution puts you in the driver’s seat. You choose how much you want to contribute toward employee coverage, and employees can apply that contribution to the plan that works best for them. If they choose a higher-cost plan, they simply pay the difference. That means you can offer meaningful benefits while keeping costs more predictable year after year.
Keep in mind, you can structure your contribution in a few different ways:
- A fixed percentage of a specific plan or tier
- A contribution based on all plans
- A contribution tied to the lowest-cost plan available
The flexibility is built to work for businesses of all sizes. That means the program evolves with you.
2) Access 7 California health plans through one small business program
As you know, one size health care rarely fits every employee. That’s why CaliforniaChoice gives employees access to seven health plans and 100+ coverage options through one program. Depending on where employees live, they can choose from statewide and regional carriers, including:
- Anthem Blue Cross
- Health Net
- Kaiser Permanente
- Sharp Health Plan
- Sutter Health Plan
- UnitedHealthcare
- Western Health Advantage
Some employees may want a PPO because their doctor is in-network. Others may prefer an HMO with lower out-of-pocket costs. Some may even choose an HSA-compatible plan to help save for future medical expenses. Check out our related blog post. Giving employees options helps them feel more confident in their benefits and more satisfied with their coverage overall.
3) Give employees better access to care — HMO, PPO, HSA, and more
Every employee uses health care differently. CaliforniaChoice offers access to multiple provider networks, plan types, and ACA metal tiers — Bronze, Silver, Gold, and Platinum — so employees can balance monthly premiums with the level of coverage they want.
More choice means employees have a better chance of finding:
- Doctors they already know and trust
- NearbySpecialists
- Hospitals within their preferred network
- Coverage that matches their budget and lifestyle
It’s also a strong recruiting and retention advantage for you. Employees appreciate having the freedom to choose benefits that actually fit their needs.
4) Flexible group health plan renewals with no surprises
Renewals don’t have to feel overwhelming. With CaliforniaChoice, you have the flexibility to keep your contribution the same or adjust it at renewal based on your changing business goals and budget. Once you decide, your contribution is locked in for the plan year.
Meanwhile, employees can continue reviewing plan options and selecting the coverage that works best for them. It’s a simpler, more flexible approach to annual renewals.
5) Round out your employee benefits package beyond medical coverage
Another reminder, your benefits don’t stop with health insurance. CaliforniaChoice also offers access to additional coverage options that can help round out your benefits package, including:
- Dental DHMO and PPO plans
- Vision coverage
- Chiropractic and acupuncture benefits through Landmark Healthplan
- Life Insurance and AD&D coverage
Offering extra benefits can help employees feel more supported while making your overall package more competitive.
6) Value-added benefits included with CaliforniaChoice
Your CaliforniaChoice coverage also includes access to value-added programs through the Business Solution Suite and Member Value Suite. Be sure you and your employees are taking advantage of:
- Flexible Spending Accounts (FSAs)
- Premium Only Plan (POP) setup
- Discounted Vision and Hearing services
- Prescription savings through the California Rx Card
- Fitness and wellness discounts
- Savings on travel, entertainment, and events
- Reduced pet insurance premiums through MetLife and Spot
7) Simplified health benefits administration for small businesses
Managing benefits shouldn’t create more work for you and your team. By providing one monthly bill, one simple enrollment process, and one place to manage your benefits online, you’re free from administrative headaches. Your employer dashboard at calchoice.com puts everything at your fingertips.
A smarter way to manage benefits
Health care costs continue to rise, and many employers are looking for ways to balance affordability with employee expectations. Defined Contribution helps you do both. With predictable contributions, flexible plan choices, and simplified administration, CaliforniaChoice makes it easier to offer benefits employees appreciate while helping protect your business from future premium increases.
Questions? Your broker can help.
If you’d like to revisit your contribution strategy, explore additional coverage options, or better understand the tools available through CaliforniaChoice, connect with your broker. They can help you make the most of your benefits program and ensure your employees continue getting the flexibility, choice, and access they value most.