Friday, May 21, 2010

How to set up a self funded dental plan?

Small business (only 4 employees), want to set up plan. Do I HAVE to go through a 3rd party administrator, or can we keep it in-house.


Are there any tax ramifications either way.

How to set up a self funded dental plan?
No, you do not have to go through the 3rd party administrator. However, you do want to go through a local agent. The agent can find the best plan for your group. The plan and the premium is the same using an agent as it is going through a company directly and the agent will give you local support. The taxes are the same either way.
Reply:You can self-fund the plan without paying a TPA or other agency to do it for you. Personally, considering how little a TPA would probably charge you to administer the plan, I think I'd just pay them to do it. It's less headache for you on an administrative basis, plus they'll be abiding by the legal guidelines.





You could use a broker/consulting firm to help you find a TPA, or you can go directly to the TPA yourself. Using a broker takes the burden off of you, but of course you'll have to pay for their services, too.

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