34
Texas Association of Builders
November/December 2015
Insurance Marketplace
O
ne important reason that the
Texas Association of Builders
(TAB) has developed a private
health insurance and employee benefits
marketplace is cost. When TAB members
purchase health insurance and benefits
as a group, we can help employers drive
down the cost of offering benefits to their
employees. When it’s time to renew health
insurance, most businesses are finding that
their premium costs are rising, and double
digit rate increases are common.
Employers have a choice in how they
purchase, fund and deliver benefits to their
employees, through a defined contribution
plan, and that is what the TAB Member’s
Choice Health Insurance & Benefits
Marketplace offers through Network
Brokers who are members of the Texas
Association of Builders.
Under Defined Contribution, where
employers create a benefits budget that’s
affordable for them, the employer defines
the contribution to each employee, and
the employee decides what benefits to buy.
The employer works with a TAB Member’s
Choice Health Insurance & Benefits
Marketplace Network Broker to allocate
the benefits budget among the employees.
Each employee then works with the
Network Broker to choose the benefits they
want to purchase from the marketplace,
allowing the employee to have the ability
to make their own health insurance and
benefits decisions.
The new world of defined contribution
plans and electronic marketplaces such
as the TAB Member’s Choice Health
Insurance & Benefits Marketplace is here!
An actual renewal process for a member's
company that has transitioned from the old
defined benefits model to the new defined
contribution plan using a marketplace like
ours is described (see box). TAB is pleased
that it’s employers and their employees
have this opportunity to participate in
our marketplace.
Texas Association of Builders
Member’s Choice
Health Insurance & Benefits Marketplace
