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May 22, 2002 at 08:00 PM
NU Online News Service, May 22, 3:43 p.m. – Principal Financial Group Inc., Des Moines, Iowa, says it will be getting into the defined contribution health plan business.
The typical defined contribution health plan combines high-deductible, catastrophic health insurance with employer-funded personal health care accounts. Employers usually contribute a set amount per employee.
The Principal program offers many options, including coverage for up to 100% of the cost of routine care and preventive care, up to a predetermined amount; health care accounts set up so that unused dollars can be rolled over from one year to the next; traditional flexible spending accounts; and catastrophic coverage.
Sponsors of self-funded defined-contribution plans can buy stop-loss policies similar to those now available with traditional health plans, Principal says.
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