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 insurer. You can shop 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 CaliforniaChoice.

What’s the difference between CaliforniaChoice 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 toward 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. That difference can give both employers and employees more flexibility.

How Does CaliforniaChoice Work?

With traditional group health, you generally choose the coverage you want to offer employees and pay a portion of the premium. CaliforniaChoice takes a different approach.

Through the CaliforniaChoice Defined Contribution model, you decide how much you want to contribute toward your employees’ coverage. You can contribute a fixed dollar amount or a fixed percentage, depending on the program structure you select. Then your employees choose the plan that works best for them.

• Want a lower-cost option? Choose one.
• Need a broader network? There’s a plan for that.
• Prefer a different carrier, HMO, PPO. or HSA? Employees can select from multiple available options.

If an employee chooses coverage that costs more than your contribution, the employee simply pays the difference. If they select coverage that costs less, they pay nothing.

With CaliforniaChoice, employers control their costs and employees get more choice.

How Does CaliforniaChoice Keep Employer Costs Predictable?

One of the biggest challenges with traditional group health insurance is managing rising premiums. CaliforniaChoice addresses that with a 12-month premium lock. That means, once you establish your Defined Contribution, it remains locked for 12 months. You don’t have to worry about your contribution changing because of a mid-year premium increase.

When it’s 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, that can make budgeting for employee benefits much more predictable.

What Health Plan Choices Do Employees Get with CaliforniaChoice?

With a traditional group plan, you may offer one plan or a selection of plans. CaliforniaChoice brings multiple health plans together in one employee-choice program.

Employees can choose from a range of plan options, including HMOs and PPOs, across different benefit levels. CaliforniaChoice offers coverage across all four ACA metal tiers. That gives employees the ability to select 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 level of access they value most. That’s particularly helpful when your workforce isn’t one-size-fits-all.

Your employees may have different doctors, specialists, prescriptions, budgets, and priorities. CaliforniaChoice lets them choose their preferred coverage rather than asking everyone to fit into the same plan.

One Program for Medical and Ancillary Benefits

Employee benefits don’t stop with Medical coverage. With traditional group health insurance, you may need to purchase ancillary benefits separately. CaliforniaChoice brings several benefits together through one program and one monthly invoice.

Available options include:

• Dental, including DHMO and PPO options
• Vision
• Chiropractic & Acupuncture
• Life Insurance and AD&D

That can simplify benefits administration while giving employees access to more comprehensive coverage.

Easy Renewal, No Re-Shopping Required

Another important difference is flexibility at 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 necessarily have to start from scratch and re-shop the entire market every year.

Is CaliforniaChoice Right for Your Business?

There’s no single health insurance solution that’s 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.