Why should one consider the eHSA “defined contribution” approach instead of a traditional individual health and dental program?
Traditional individual health and dental programs offer limited coverage in comparison to the wide range of eligible medical and dental expenses that can be claimed at 100% reimbursement with no deductibles, or limits other than the amount contributed to the eHSA. It is a “defined contribution approach” under which the employer decides how much can be afforded initially and on an ongoing basis. There is no annual increase in contribution or cost as there is under a traditional group insurance program where insurers utilize arbitrary “inflation and trend” factors to justify their compounding premium rate increases at each renewal.
