Zane Benefits Publishes New Information on Pure Defined Contribution Health Models

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Why a pure defined contribution health model is a win for employers, a win for employees, and a win for brokers.

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

According to Zane Benefits’ website, for decades, the norm in the U.S. has been that health insurance is purchased and offered in a certain way -- by the employer. And yet, many industry experts agree that health benefits are shifting away from a defined benefit health model to a defined contribution health model.

With the purest form of defined contribution, employers offer employees a health insurance allowance as the benefits package. Employees purchase an individual policy of their choice, often with the help of a health insurance broker, and are reimbursed by the employer.

A defined contribution health model allows an employer to control its costs on a monthly basis by setting monthly health insurance allowances. Here are the top two wins for employers.

  • Controllable Costs – There are no minimum or maximum contribution requirements, and employers can vary employee contributions based on job criteria.
  • More Time for Meaningful Work – Administering the health benefits program becomes a payroll function and requires minimal involvement from the employer.

According to Zane Benefits’ website, employees win with defined contribution because, rather than having a “one-size-fit-all” group plan that may or may not fit their family’s specific needs, they are able to choose an individual health insurance plan that works best for their family.

  • Lower Costs – Individual health plans costs 20-30% less than traditional group plans and new tax credits are available to qualifying employees to lower their out-of-pocket costs even more.
  • Choice of Plan – With their defined contribution allowance, each employee may choose the health plan that best fits their personal needs.

For health insurance brokers, a defined contribution health plan offering provides a solution to increase individual health insurance policy sales and retain clients who are canceling group health insurance.

  • A New Solution for Small Businesses Without Health Insurance – Before defined contribution, there was little a broker could do to help companies that couldn’t afford to offer group health insurance.
  • Increased Individual Health Insurance Sales – With a defined contribution health plan, brokers become a “401k-like” advisor for individual health insurance, and help employees pick the best health insurance plan for their family.

Click here to read the full article.

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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 http://www.zanebenefits.com.

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Christina Merhar
Zane Benefits
800-391-9209 Ext: 6725
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