Park City, Utah (PRWEB) August 18, 2013
Today, Zane Benefits, the number one online small business health benefits solution, published new information on brokers and defined contribution.
According to Zane Benefits’ website, defined contribution health plans are the next benefits trend for small businesses and health insurance brokers, alike. New studies predict that small businesses in the U.S. are gearing up to abandon traditional health coverage in favor of a defined contribution strategy.
A "pure" defined contribution approach provides a simple small business health insurance solution for employers who either (1) cannot afford to enter the small group market, or (2) cannot afford their current health insurance premiums, but still want to offer health benefits to their employees.
For brokers, a defined contribution strategy offers a solution to increase individual health insurance policy sales and retain clients who are canceling group health insurance.
Here are three simple ways brokers utilize defined contribution to help grow their insurance business:
A New Solution for Small Businesses Without Group Health Insurance – The majority of small businesses want to offer health insurance to recruit and retain the top employees, however, over 2.3 million small businesses don't offer health insurance in the US. Many who don't offer health insurance are shopping, but before defined contribution, there was little a broker could do to help companies that couldn’t afford group health insurance. Defined contribution plans allow an employer to have complete control over costs on a monthly basis while still reaping 100% of the tax advantages associated with traditional employer-sponsored health insurance. There are no minimum or maximum contribution requirements. Brokers have another tool to help small businesses provide health insurance by offering a defined contribution solution.
Increased Individual Health Insurance Sales – With a defined contribution health care plan, brokers help employees pick the best health insurance plan for their family. Defined Contribution is like the “401k for health benefits” and the broker becomes an advisor for this. As a result, brokers everywhere are dusting off their once-ignored individual product lines to meet the demands that defined contribution healthcare plans are generating. Defined contribution plans become a lead generation tool for individual health insurance sales.
Increased Voluntary Healthcare Sales – Many brokers use defined contribution health care plans as a tool to generate more voluntary healthcare sales. Defined contribution can be used to reimburse voluntary products like qualified dental, vision, and accident health insurance plans.
To summarize, offering defined contribution solutions can be a good fit for brokers who want to be on the forefront of benefits solutions and recognize that innovation and choice bring value to their clients.
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 http://www.zanebenefits.com .