Flexible benefits plan
Employees allocate credits across benefit options.
A flex plan gives employees credits to allocate among coverage options, typically over a core of mandatory benefits. It lets a single plan serve employees at different life stages without paying for coverage nobody uses.
Flexibility introduces anti-selection risk: employees choose the coverage they expect to claim, which raises cost per unit of benefit. Good flex design constrains choice enough to manage that.
What this means for a BC plan
Flex designs suit larger Vancouver employers with a demographically mixed workforce. Below about a hundred lives, the administrative overhead usually outweighs the benefit.
Related terms
Where this comes up
What a group plan includes · All glossary terms · Ask an advisor directly
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