Zane Benefits Publishes New Information on Defined Contribution and ACA

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Four key ACA changes support the shift from defined benefits to defined contribution health plans.

Today, Zane Benefits, the online alternative to group health insurance, published new information on defined contribution and ACA.

According to Zane Benefits’ website, the landscape of employer-sponsored health insurance is changing. Many of the Affordable Care Act (ACA) provisions favor the individual health insurance market, making defined contribution health plans the ideal health insurance solution for US employers.

There are four key ACA changes that make the shift from defined benefits (group health insurance) to pure defined contribution inevitable.

#1) Guaranteed-Issue Individual Health Plans

According to Zane Benefits’ website, beginning January 1, 2014, insurance carriers must accept all applicants for individual health plans regardless of health status.

This portion of the ACA evens the playing field between group health plans and individual health plans. This is important because it minimizes the moral obligation of employers to offer group health insurance to employees with pre-existing conditions. As a result, the decision to offer health benefits will become purely an economic business decision.

#2) Employer Mandate (Only For Employers with 50+ FTE)

According to Zane Benefits’ website, employers with more than 50 full-time-equivalent (FTE) employees must sponsor an "affordable" and "qualified" group health plan, or else the employer may have to pay a tax penalty capped at $2,000 per full time employee. (Note: This provision now starts January 1, 2015). The penalty does not apply to companies with less than 50 FTEs.

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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 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 ZaneHRA, visit

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Christina Merhar
Zane Benefits
800-391-9209 6725
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