Zane Benefits Publishes New Information on Defined Contribution Health Benefits

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The Top Questions on Defined Contribution Health Benefits - Answered

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

According to Zane Benefits’ website, defined contribution health benefits are an employee health benefits strategy that are gaining popularity because of their affordability and accessibility.

Instead of offering a specific benefit, companies give healthcare allowances to employees. Employers - especially small and mid size employers - find this an attractive solution.

The term defined contribution has become a big buzzword this year in the health insurance industry. By using the term 'pure' we're referring to a defined contribution strategy that is not integrated with group health insurance coverage. Generally, the employer does not restrict the plans employees can choose from. With a 'pure' defined contribution approach, employees can be reimbursed for any qualified health insurance plan.

One of the primary reasons defined contribution health benefits are taking off is because of the built-in cost controls. There are no minimum or maximum contribution requirements, so companies can contribute any amount that fits the health benefits budget. Companies can also vary employee allowances based on job criteria.

Because of compliance with various regulations, most companies use a defined contribution software platform to administer the health benefits. There are no time-consuming annual renewals, and employees maintain a direct relationship with insurance company -- all of which leaves business owners and HR staff with more time for strategic work.

According to Zane Benefits’ website, whether the company currently offers health benefits or not, companies will want a thoughtful implementation process. For example, look for a defined contribution software platform with a dedicated implementation team to ensure a smooth and fast transition for the company and employees.

The idea behind 'pure' defined contribution health benefits is that it gives employees the most control and choice with their health benefits. It puts employees in the driver's seat. Employees use their healthcare allowance to select the health plan that best fits their families' needs, choosing any plan, from any carrier. They can keep their same network and doctors, and pick a coverage level that fits their health needs. Individual health plans costs 20-30% less than traditional group plans, and new tax credits are available to qualifying employees.

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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
+1 (800) 391-9209 Ext: 6725
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