Zane Benefits Publishes New Information on Defined Contribution Health Plans

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Many small employers are using defined contribution to provide affordable health plans with the ACA.

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

According to Zane Benefits’ website, many small employers are using a pure defined contribution health plan approach paired with individual health insurance and the new health insurance subsidies to create affordable health benefits that employees love.

Many small employers are transitioning away from group health insurance and instead offering pure defined contribution health benefits where employees receive a set monthly healthcare allowance to spend on their choice of qualified health insurance.

With this approach, an employer would follow these four steps:

1. Not offer a traditional group health insurance plan

2. Give employees a defined contribution healthcare allowance to use on qualified individual health insurance

3. Assign a health insurance broker to help employees enroll in individual health insurance through the marketplace, and receive a discount via a health insurance subsidy (if eligible). Employees can also enroll in health insurance "off" the marketplace through a broker or private exchange

4. Reimburse employees on payroll, after employees submit proof of their health insurance

If employees meet certain income requirements and do not have access to an affordable employer-sponsored or government health insurance plan, then they will be eligible for the health insurance subsidies.

Employees not eligible for the subsidies, because of household income or access to coverage under a spouse's health insurance plan or government program, can still use the defined contribution allowance for their health insurance premium expenses purchased through the marketplace, or through the private market.

Click here to read the full article.

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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