Park City, Utah (PRWEB) December 25, 2013
Today, Zane Benefits, the number one online small business health benefits solution, published new information on employee health insurance decisions.
According to Zane Benefits’ website, CEOs at small and growing companies have various factors to consider with employee health insurance.
One of the first steps in evaluating health insurance options is determining who the company will offer benefits to. Will everyone be covered? Or just certain staff? Full time and part time? Do employees already have coverage through spouses or other family members? Would they keep their current coverage if you offered benefits? Do employees already have coverage under an individual health plan? Are they eligible for, and receiving health insurance tax credits?
These types of questions will help you assess what type of health coverage would be best for the company, and how many people will participate.
Cost sharing requirements will vary by the type of health benefits the company decides to offer.
With a group health insurance plan, monthly premiums are generally paid for by both the employer and employees. In most states, employers are required to cover at least 50% of the monthly premium for their employees. Keep in mind what the company can afford, and also what employees can afford. Premium rates may also increase annually.
With a defined contribution approach there is no minimum cost-sharing or minimum contribution amount. The plan could provide a flat $200/month to employees, and employees would cover any remaining amount of their premium. With a defined contribution health plan the company could also offer different amounts by class of employees. For example, the plan could provide $300/month to the CEO and managers and $150/month to part time clerical staff. As long as the classes are based on bona fide job criteria, this is allowed.
Administering a group health insurance plan typically involves plan selection, employee enrollment and education, claim disputes, and annual renewals.
Administering a defined contribution health plan reduces health benefits administration and involves setting up the plan via defined contribution software, employee enrollment and education, and reimbursing employees on payroll.
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.