Zane Benefits Publishes New Information on Defined Contribution Health Plans

Small Businesses Using Defined Contribution Software to Offer Health Insurance in a New Way

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Park City, Utah (PRWEB) May 08, 2013

Today, Zane Benefits, Inc. published a new guide 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, defined contribution health plans are gaining popularity with small businesses and medium-sized businesses as a new alternative to employer-sponsored group health insurance plans. Rather than paying the costs to provide a specific group health plan benefit (a "defined benefit"), employers can fix their costs on a monthly basis by establishing a defined contribution health plan. Defined contribution health plans by themselves are not health insurance plans. With defined contribution health plans, both the employees and employers save on the cost of health insurance. A defined contribution health plan is technically a Section 105 Health Reimbursement Arrangement (HRA).

Defined Contribution Software

According to Zane Benefits’ website, there are two main reasons why businesses should use Defined Contribution Software to administer their defined contribution plan: 1) Time savings/ease of use, and 2) Tax-savings/compliance.

Time Savings & Ease of Use
According to Zane Benefits’ website, a quality Defined Contribution Software removes the time, cost and complication of offering health benefits. Small businesses that use Defined Contribution Software can expect to:

  • Administer a defined contribution health plan online in less than 5 minutes per month.
  • Integrate a defined contribution health plan with existing payroll or HR processes.
  • Manage the defined contribution health plan online 24/7.

Tax Savings & Compliance
According to Zane Benefits’ website, Defined Contribution Software keeps the business in compliance with three key areas:

1) Tax Savings & IRS Compliance: The IRS requires that a formal defined contribution health plan (with IRS-compliant plan documents) be established in order for reimbursements to be tax-free for the employer, and employees.

2) Federal Compliance: The federal government has guidelines for employers who want to contribute to employee's IRS-qualified medical expenses under HIPAA and ERISA:

  • HIPAA (Medical Privacy): By using Defined Contribution Software, your software provider processes employees’ claims, keeping all medical information is HIPAA-protected. And, all receipts are stored in compliance with HIPAA for 10 years, as required by the IRS for audit purposes. The employer never sees employees’ medical information, or even the type of medical expense they incurred ; both important for HIPAA and non-discriminatory purposes.
  • ERISA: Under ERISA, the employer is not allowed to “endorse” a specific individual health insurance plan. Defined Contribution Software keeps the employer ERISA-compliant because you never know what policies are purchased, or even if they are seeking reimbursement for a health insurance premium (only that it is a qualified medical expense allowed by the plan).

3) ACA/Health Care Reform: According to Zane Benefits’ website, the Affordable Care Act (ACA) introduced new requirements for Defined Contribution health plans including how benefit information is presented to employees (Summary of Benefits & Coverage, or SBC), new reporting forms (720/5500) and new plan design requirements (ex: annual limits). A reputable Defined Contribution Software provider makes sure you have the appropriate documents, data and plan settings in place to be ACA compliant.

Click here to read full article.

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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 http://www.zanebenefits.com.


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