Park City, Utah (PRWEB) November 29, 2013
Today, Zane Benefits, the number one online small business health benefits solution, published new information on nonprofit health insurance.
According to Zane Benefits’ website, nonprofit organizations face important decisions about employee health benefits, especially as the Affordable Care Act creates new regulations, and new opportunities, for employers. Just like for-profit employers, the key reason nonprofits offer health insurance is for recruiting and retention.
With limited access to capital, small nonprofits often feel hard-pressed to offer or maintain health insurance coverage for their employees -- even though it is something leadership, the board of directors, employees, and donors/funders value.
1. Should a nonprofit offer health benefits, or not?
Health benefits can be a cost-effective (and tax-free) way to boost employee compensation.And, considering the recruiting, training, and general cost of losing and replacing an employee, investing in health benefits up-front can actually save the nonprofit money in the long run.
2. How much can we afford to spend?
Many nonprofits decide how much they can budget for health benefits and look at options from there. Other nonprofits assess current rates to build their budget.
The average group health insurance premium, usually shared between the employer and employee, have more than doubled since 2002, and increased 168% since 1999.
Because of the high costs of group health insurance, nonprofits also look at and compare the cost of individual/family health insurance rates. And as of 2014, massive tax subsidies are available to eligible employees to reduce what they pay for health insurance.
3. Which health insurance strategy should we choose?
Group Health Insurance Plan: Also called 'employer-sponsored health insurance' or 'job-based health insurance', a group health insurance plan usually covers all employees and their family members. These plans are generally uniform in nature, offering the same benefits to all employees or members of the group. Group health insurance is chosen and purchased by the nonprofit, and employees are usually asked to share the premium cost.
Defined Contribution Health Plan: Rather than paying the costs to provide a specific group health insurance plan, nonprofits can fix their costs on a monthly basis by establishing a defined contribution health plan. A defined contribution health plan is like a business expense account for health insurance. The plan can be set up to provide different allowance amounts by type of employee, and there are no minimum contribution amounts or participation requirements.
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.