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Tax and insurance regulations should allow for a defined contribution health insurance option for employers. This would make health insurance simple for employers and would give employees a broad range of choices. Small businesses generally lack health insurance expertise, human resource departments and market power. They would like the option of contributing dollars to employees’ health insurance without actively choosing, purchasing or managing the plans. With defined contribution health insurance, an employer could contribute pre-tax funds toward employees’ insurance. (This amount should remain deductible to the employer.) Employees could then purchase their own insurance policies.
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