Zane Benefits Publishes New Information on Defined Contribution

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Defined Contribution Health Plans Gaining in Popularity in the US

Today, Zane Benefits, Inc. published new information on defined contribution health plans. 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, recruiting and retaining key employees is important to every company, and health benefit program is a key part of the compensation to offer to employees. Due to the rising costs of traditional employer-sponsored group health insurance, defined contribution health plans are gaining popularity in the U.S.

With a "pure" defined contribution health plan, a company provides a stand-alone Health Reimbursement Arrangement instead of a group health plan. Then, a company simply reimburse employees tax-free for their individual health insurance policies, and other eligible medical expenses.

In addition to being a cost-effective and flexible solution for small businesses, employees value the health benefits.

1. Employee Choice
According to Zane Benefits’ website, with defined contribution, employees choose how to spend their allowance. They select their own individual/family health insurance policy that best fits their needs. They choose from any carrier and any type of plan. Often times, a company uses an insurance professional of their choice to help employees select these individual policies.

If employees don''t use their full allowance on their insurance premium, for example, they choose how to use the remainder of their allowance (on other eligible medical expenses such as co-pays, prescriptions, vision, dental, etc).

2. Plan Portability
According to Zane Benefits’ website,because employees purchase their own individual health insurance policies, employees own the policy and can take it with them when they switch jobs.

3. Guaranteed Renewability
According to Zane Benefits’ website, employees' individual health insurance policies are guaranteed renewable. This means they cannot be terminated by the insurance company unless they stop paying the premium.

4. Tax-Free Dollars
According to Zane Benefits’ website, employees value pre-tax dollars. Simply stated, $1 tax-free is worth more than $1 in taxable wages. By receiving reimbursements tax-free, the benefit is worth more than other taxable compensation.

5. Less Expensive Policies
According to Zane Benefits’ website, the cost of individual/family health insurance premiums often costs 1/3 - 1/2 the price for similar group coverage in 45 states. This is primarily because insurance carriers in 45 states are allowed to, until 2014: (1) price based on age and (2) reject or charge more to applicants for personal policies with preexisting 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 ("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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