When it comes to employee benefits, you now have more options for your employees than ever before.
You can purchase coverage directly through a commercial health insurance company. You can buy through Covered California for Small Business (CCSB), California’s Affordable Care Act (ACA) public exchange. Or you can work with a health insurance broker to compare different carriers, plan types, and cost options, including California Choice.
What is the difference between California Choice and traditional group health insurance? The biggest difference comes down to who chooses the health plan.
With a traditional group health plan, the employer typically selects the plan, or a limited selection of plans, and employees choose from what the employer offers. With CaliforniaChoice, the employer sets a defined contribution for coverage (think of it as a health insurance gift card), and employees can use that contribution to choose the health plan and benefits that best fit their individual or family health care needs. This difference can give more flexibility to both employers and employees.
How does California Choice work?
With traditional group health, you typically choose the coverage you want to offer employees and pay a portion of the premium. CaliforniaChoice takes a different approach.
With the CaliforniaChoice Defined Contribution model, you decide how much you want to contribute to your employees’ coverage. Depending on the program structure you choose, you can contribute a fixed dollar amount or a fixed percentage. Then let your employees choose the plan that works best for them.
- Want a low cost option? Choose one.
- Need a wider network? There is a plan for that.
- Prefer a different carrier, HMO, PPO. Or an HSA? Employees can choose from a number of available options.
If an employee chooses coverage that costs more than your contribution, the employee only pays the difference. If they choose coverage that costs less, they pay nothing.
With CaliforniaChoice, employers control their costs and employees have more choice.
How does California Choice keep employer costs predictable?
One of the biggest challenges with traditional group health insurance is managing rising premiums. CaliforniaChoice addresses this with a 12-month premium lock. This means, once you set up your defined contribution, it is locked in for 12 months. You don’t have to worry about your contribution changing due to mid-year premium hikes.
When it comes time to renew, you can adjust your contribution—up or down—based on your budget and lock it in for another year. For a small business owner, this can make budgeting for employee benefits much more predictable.
What health plan choices do employees get with California Choice?
With a traditional group plan, you can offer a plan or a selection of plans. CaliforniaChoice brings multiple health plans into one employee choice program.
Employees can choose from a variety of plan options, including HMOs and PPOs, at different benefit levels. CaliforniaChoice offers coverage in all four ACA metal tiers. This gives employees the ability to choose Bronze, Silver, Gold, or Platinum tier plans, giving them additional ways to balance premiums and out-of-pocket costs.
The program also offers both full and limited network options, giving employees choices based on the providers and access levels they value most. This is especially useful when your workforce is not the same size.
Your employees may have different doctors, specialists, prescriptions, budgets, and preferences. CaliforniaChoice lets them choose their preferred coverage instead of asking everyone to fit into one plan.
A program for medical And Ancillary benefits
Employee benefits don’t end with medical coverage. With traditional group health insurance, you may need to purchase ancillary benefits separately. CaliforniaChoice offers many benefits through one program and one monthly invoice.
Available options include:
- of the teethIncluding DHMO and PPO options
- The vision
- Chiropractic and acupuncture
- Life Insurance and AD&D
This can simplify benefits administration while giving employees access to more comprehensive coverage.
Easy renewal, no need to repurchase.
Another important difference is flexibility in renewal.. If your budget changes, you can adjust your defined contribution. When your employees’ needs change, they can choose a different plan during the next enrollment period. You don’t have to start from scratch and re-shop the entire market every year.
Is California Right for Your Business?
There is no single health insurance solution that is right for every employer. But if you’re looking for a way to control your employee benefits budget while giving your employees more choice, CaliforniaChoice may be worth exploring.
An employee benefits broker can help you compare CaliforniaChoice with traditional group health insurance and other available options. Your broker can also review provider networks, plan designs, and costs to help you find the right fit for your business.
If you don’t already have a broker, CaliforniaChoice can help you find one.
