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View More Press Releases by Burns & Associates, Inc

Press release:

How to Reduce Costs And Expenses 20 - 37% Using Defined Contribution Health Plans

Issued by: Burns & Associates, Inc

Date: Nov. 8, 2000

DEFINED CONTRIBUTION HEALTH PLANS:
HOW TO REDUCE COSTS AND EXPENSES 20-37%

It now appears that, in the future, employee benefits will be provided through a Defined Contribution model of some sort. However, experts have identified that the main problem restricting the use of the concept is the fear of the loss of the tax deductibility. Burns & Associates is pleased to announce the solution to this problem.

The Health Incentive Plan, a Patent Pending system and method, is now available, exclusively from Burns & Associates, to allow employers to reduce the costs and expenses of providing employee benefits by as much as 37%. The HI Plan is not insurance and is not an employee benefit, it is, essentially, a change in accounting procedures utilizing the payroll system and the existing employee benefits program costs and expenses. It does not require any changes in your present benefit plans or service providers. As such, we do suggest that you have the HI plan evaluated as a financial tool, by your tax or financial advisors, before involving your Benefits or Human Resources Departments.

To most employers, providing employee benefits is a necessary expense. Unfortunately, it is a big burden that uses up expensive administrative services, causes employee dissatisfaction and is always increasing in cost. The present system is controlled by the insurance companies, HMOs and service providers. Employers are forced to accept their terms and premiums. The only choices that employers have are to:

¨Accept the premiums and increases. ¨Accept the terms and conditions.
¨Reduce the benefits. ¨Pass the cost to the employees.
¨Absorb the costs and reduce profit.

Is there a solution?? YES!! to some of these problems, if you use the HI Plan, a revolutionary “Patent Pending” system and method for reducing the costs and expenses of providing employee benefits. Although initially designed to apply to health and medical benefits, the HI Plan can be designed to operate with any existing employee benefit, fringe benefit or expense reimbursement program that is available on a pre-tax basis, including:

· Health and medical insurance including Dental and Vision.
· Transportation expense fringe benefits.
· Educational assistance programs.
· Employee assistance programs (EAP).

The current system of taxation provides tax benefits to encourage employers to provide health and welfare benefits to employees. But the available tax benefits are not being used to the full extent allowed by the Tax Code and so the employer does not get the full subsidy that was intended by the Legislature when these laws were enacted. The HI Plan makes full use of the Internal Revenue Code and the Treasury Regulations to maximize the benefits available to both the employer and the employee.

The HI Plan is designed to be fully compliant with the IRC and Treasury Regulations. Evaluation material consisting of a detailed explanation along with supporting material of “substantial authority” including Private Letter Rulings, Technical Advice Memoranda etc issued by the IRS, along with Tax Court and District Court cases that exist in support of the plan designs, is made available to qualified prospective clients.


DEFINED CONTRIBUTION vs DEFINED BENEFIT

The employer and employee can take charge and control of benefit costs and dictate more of their own terms by changing the focus from relying on a Defined Benefit system to empowerment through a Defined Contribution system as is possible with the HI Plan.

In a Defined Contribution system, the focus is changed from reimbursing or paying for specified medical services to reimbursing or paying for any service, allowed by law, up to specified maximums. In other words, the amount of money available is determined first, then the best use is made of it, thereby making it possible to control the cost, and profit from doing so, without affecting the quality of the medical care or even changing plans.

NEW ADVANTAGES

A Defined Contribution System, such as the H I plan, promotes empowerment of both the employer and the employee by allowing both to:

· Control Funding. The employer is able to control the funding levels, instead of being at the mercy of the insurance companies, service providers, inflation, employee over utilization and group claims experience.
· Control Design. The employer controls the plan design by controlling the funding levels using the proprietary methods.
· Control Coverage. Employees are encouraged to select coverage with higher co-pays and deductibles.
· Control Usage. Employees are encouraged to reduce usage and expenditures without sacrificing service and without incurring extra expenses.
· Increase Satisfaction. Employee satisfaction is increased and complaints reduced.
· Save $$$. Employers have extra funds available to provide better benefits, additional benefits or to allow employees to share in the reduced costs and expenses. The potential savings can be illustrated using an Excel spreadsheet.

Direct inquiries from qualified prospects (employers with 500+ lives) are welcome.
Agency/Agent/Brokers/Consultants with qualified clients or direct contacts in the large group market are also welcome.

For further information call:
George D. Burns (954) 435-4717 OR Email: gburns@alloymail.com

View More Press Releases by Burns & Associates, Inc


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