Zane Benefits Publishes New Information on Health Care Reform and Small Businesses

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Health Care Reform Requires Certain Businesses to Offer Employees Health Insurance, or Else Pay a Penalty.

Today, Zane Benefits, Inc. published new information on the health care and small businesses. Zane Benefits, which provides comprehensive and flexible alternatives to traditional employer sponsored health benefits, is the leader in defined contribution and health reimbursement arrangements.

According to Zane Benefits’ website, health care reform requires certain businesses to offer employees health insurance. Starting in 2014, businesses with more than 50 full-time-equivalent employees will be required to either offer health insurance coverage, or pay a tax penalty based on full-time employees.

According to Zane Benefits’ website, business with greater than 50 employees should view the potential penalties as a contribution toward their employees' health benefits. By the employer paying the minimal penalty (much lower than the cost of sponsoring a traditional group health plan), it will allow qualifying employees to obtain the tax credits for health insurance through the state health insurance marketplaces. As such, the employer "penalty" is actually a contribution that provides financial assistance to qualifying employees.

New Options with Health Insurance Marketplaces & Defined Contribution

According to Zane Benefits’ website, with the creation of state health insurance marketplaces (guaranteed-issue, with tax subsidies for eligible employees), many employers will look for new options with providing employees health benefits.

Rather than paying the costs to provide a specific group health plan (a "defined benefit"), many employers will instead fix their costs by establishing a monthly dollar amount (a “defined contribution”) that employees choose how to spend.

What About the Tax Penalty... Don't Companies Have to Offer Health Insurance?

According to Zane Benefits’ website, no. Even with the tax penalty, many businesses (with over 50 employees) will drop their group health insurance, provide a Health Reimbursement Arrangement, and send employees to the health insurance exchanges.

The tax penalty is simply incorporated into the business’ overall health benefits expense. With rising costs of group health policies, employers can offer comprehensive benefits at a lower cost (even with the tax penalties).

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About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHRA") for Health Reimbursement Arrangements (HRAs) and defined contribution health care. The flagship software provides a 100% paperless administration experience to employers and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about ZaneHRA, visit

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Christina Merhar
Zane Benefits
800-391-9209 6725
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