Zane Benefits Publishes New Information on Defined Contribution

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How to Explain Defined Contribution Healthcare to Employees

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

According to Zane Benefits’ website, as more and more companies adopt defined contribution healthcare, employees may have questions about how the health benefits program works and how it benefits their family.

Defined contribution healthcare is a new type health benefits program that gives employees control over their health insurance. With defined contribution healthcare, the company gives you a monthly healthcare allowance to spend on health insurance.

Each employee chooses how to spend their healthcare allowance. For example, each employee chooses the health plan that best fits their family’s needs. This includes the carrier, the coverage, and the doctors.

They can keep the plan as long as they want. Or, plans can be modified to meet changing family medical needs. Employees are not tied in to one specific plan that the company chooses.

According to Zane Benefits’ website, one of the reasons the company has chosen to offer health benefits with defined contribution is that it is cost effective for the company. But it also creates costs savings for employees. Individual health plans cost 20-30% less than traditional group plans. And, there are new tax credits are available to many families through the Health Insurance Marketplaces.

Individual health insurance is a policy employees purchase for themselves, and their families. Employees purchase the plan through a licensed health insurance agent, who is appointed to represent the insurance carriers, or through the Health Insurance Marketplace in each state. It works just like car insurance.

Once the benefits program is set up, the exact process will vary by which defined contribution software provider the company selects.

Each employee selects and purchases a health plan. Many employers have a health insurance broker available to help employees understand plan options and enroll in a plan. Employees log in to their online participant account to request reimbursement, or submit a paper form via fax or mail. The defined contribution provider approves all reimbursement requests. Then, the company is notified to reimburse employees for their expenses, up to the amount available to them. The company reimburses employees via payroll, check, or direct deposit.

As of 2014, health reform requires that individual health insurance plans cover all applicants, regardless of health conditions.

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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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