Park City, Utah (PRWEB) December 24, 2013
Today, Zane Benefits, the number one online small business health benefits solution, published new information on small business health insurance alternatives for 2014.
According to Zane Benefits’ website, it's that time of year when small businesses are looking at health benefits for 2014 and evaluating options. During this renewal season, small businesses are in an interesting position. Because of the ACA there are new options for small businesses to afford health benefits - including small businesses who have been priced out of traditional group health insurance. These two factors create new alternatives, and opportunities, for small businesses.
The first on the list is the non-alternative - a small group health insurance plan. A small group health insurance plan is the traditional way for small businesses to offer health insurance, however there are new options for 2014.
One of the new options is the SHOP Marketplaces. The SHOP marketplaces are new state - or federally-run health insurance exchanges for small businesses. The SHOP Marketplaces could be a good coverage option for small businesses.
However, like traditional small group health insurance plans there are certain requirements that make them prohibitive for some small businesses. For example, in Massachusetts employers participating in the SHOP must contribute at least 50% of the premium amount, employers with 1-5 employees must have 100% of the employees enrolled, and employers with 6-50 employees must have at least 75% enrolled.
For eligible small businesses, the SHOP Marketplace gives access to the small business tax credits, which as of 2014 are only available for plans offered on the SHOP.
According to Zane Benefits’ website, the second option is an emerging small business health insurance alternative, and is a simple approach to offering employee health benefits. It is a viable option for small businesses because it removes many of the barriers of offering traditional health insurance.
With a "pure" defined contribution health plan, the benefit the small business provides is health insurance allowances. If the small business would like to contribute to employee's premium expenses, they can use a defined contribution health plan to reimburse employees for the unsubsidized portion of their premium. And, the defined contribution allowances can be allocated by job criteria.
For many small businesses, a "pure" defined contribution health plan will be the most cost-effective solution because the small business can contribute any amount, and individual health insurance costs, on average, less than small group plans.
The last small business health insurance alternative is to offer nothing to employees. In other words, do not offer a formal health benefit.
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.