Zane Benefits Publishes New Information on Defined Contribution Plan Design

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Three simple questions to ask about defined contribution plan design.

Today, Zane Benefits, the number one online small business health benefits solution, published new information on defined contribution plan design.

According to Zane Benefits’ website, a growing number of businesses and nonprofits are transitioning to Defined Contribution Health Plans.

There are three key questions to ask when designing your Defined Contribution Health Plan. These three questions will help create a customized plan that achieves employee health benefit goals.

A Pure Defined Contribution Health Plan is a straight-forward approach to employee health benefits. A business offering a defined contribution health plan would follow these steps:

Step 1: Not offer a group health insurance plan.

Step 2: Define any amount you can afford for health benefits and use Defined Contribution Software to give each employee a fixed allowance amount to use for individual health insurance.

Step 3: Select an Insurance Professional, and/or provide information about the new Health Insurance Marketplaces to help employees shop for and purchase individual health policies.

Step 4: Use Defined Contribution Software to reimburse employees via payroll.

The 3 Questions to Ask When Designing a Defined Contribution Health Plan are:

1. When will the plan year start?

2. What monthly allowance amounts will you provide?

Monthly allowances will be defined by the business offering the defined contribution plan. It can vary by family size and class of employee. Classes must be based on bone-fide job criteria such as job title, location, etc.

3. When are employees eligible for the plan?

Do employees need to work a certain amount of hours, or been employed for a certain number of days in order to participate in the defined benefits plan? It’s up to the employer to set employee eligibility for the Defined Contribution Health Plan.

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About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHealth") for defined contribution health care. The flagship software provides a 100% paperless administration experience to small businesses and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about Zane Benefits, visit

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Christina Merhar
Zane Benefits
800-391-9209 6725
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