Zane Benefits Publishes New Information on Defined Contribution Plan (DCP) Rules

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Specific Rules Apply to Section 105 DCP Plans

Today, Zane Benefits, the #1 Online Health Benefits Solution, published new information on Defined Contribution Plan (DCP) Rules.

According to Zane Benefits’ website, a new wave of employers, especially small businesses and nonprofits, are offering employees health benefits with an approach called "pure" defined contribution health plans, or DCPs. The DCP is offered using a limited-purpose Section 105 medical reimbursement plan.

Zane Benefits provides the rules on how DCPs work for employees. For example, with a DCP an employer may require employees to have health insurance to be eligible for reimbursement through the DCP. Other rules include:

  • According to IRS rules, the employer owns the DCP allowances and DCPs are fully funded by the employer.
  • Typically, DCP allowances do not earn interest because the allowances usually are not held in individual bank accounts.
  • Most often, the unused money stays with the employer when an employee terminates employment.

Click here to read the full article.


About Zane Benefits
Zane Benefits, the #1 Online Health Benefits Solution, was founded in 2006 to revolutionize the way employers provide employee health benefits in America. We empower employees to take control over their own healthcare, while helping employers recruit and retain the best talent. Our online solutions allow small and medium-sized businesses to successfully transition to a health benefits program that creates happier employees, reduces costs and frees up more time to serve their customers. For more information about ZaneHealth, visit

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Christina Merhar
Zane Benefits
+1 (800) 391-9209 Ext: 6725
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