CONTRIBUTORY FUNDING ARRANGEMENT
Client: NH Non-Profit Organization
Enrolled Employees: 220
Current State:
- 5,000 Deductible Plan with $3,000 HRA Contribution
- Employee Net Deductible is $2,000 per Calendar Year
- Under Current Law, HRA is Funded Solely by Employer
Based on Employee Feedback, More Choice in Plan Designs was Desired
CGI’s Solution
Implement the CFAsm with High/Low Plan Offerings ($500 and $2,000 Deductible Plans)
- Employees Chose the Plan that Worked Best for Them
- Employer Costs Remained Neutral Overall
- CFA Created a Pool of Funds to be Used to Offset Future Increases
- 115 EE’s stayed on $2K Deductible plan, 105 EE’s elected the $500 Deductible option