Park City, Utah (PRWEB) May 10, 2013
Today, Zane Benefits, Inc. published new information on non-profit health benefits. 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, non-profits value providing health insurance to their employees. But for many non-profits, a traditional group health plan may not be cost effective for employees or the organization. Stand-alone Health Reimbursement Arrangments (HRAs) are a new alternative to employer-sponsored group health insurance plans. Stand-alone HRAs are gaining popularity with non-profits, as they provide non-profits a way to offer employees excellent health benefits without the cost or complication of group health insurance.
Why Non-Profits Want to Offer Health Insurance, But Struggle To Do So
According to Zane Benefits’ website, the key reason non-profits offer health insurance is for recruiting and retention. Traditionally, offering a group health insurance plan was seen as the only way to offer a health benefit. However, many non-profits have not been priced-out of group health insurance.
According to Zane Benefits’ website and the Department of Health and Human Service’s Agency for Healthcare Research and Quality estimated there were 498,429 non-profit employers in the US in 2011:
- Nearly half of non-profits had less than 10 employees and two-thirds had less than 50 employees.
- Only 47% of non-profits with less than 50 employees provide employees health insurance coverage.
- With limited access to capital, small non-profit employers are often hard-pressed to offer or maintain health insurance coverage for their employees.
Health Insurance Options for Non-Profits
According to Zane Benefits’ website, as a result, educated non-profits are switching to stand-alone HRAs to offer flexible, cost-controlled and sustainable employee health benefits. Stand-alone HRAs are also referred to as defined contribution health plans. Rather than paying the costs to provide a specific group health plan, non-profits can fix their costs on a monthly basis by establishing a stand-alone HRA.
The general concept of a stand-alone HRA Plan is that a non-profit would:
- Cancel the organization's group health insurance plan (if one is currently offered)
- Define any amount the organization can afford for health benefits
- Use HRA Software to give each employee a fixed dollar amount to use on medical expenses
- The non-profit selects any insurance professional to assist the organization in giving employees a resource in selecting a plan. And/or, the organization provides information on the new Health Insurance Marketplaces.
- Employees purchase their own individual/family policies, and choose how to spend their healthcare allowance.
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.