Park City, UT (PRWEB) June 14, 2013
Today, Zane Benefits, Inc. published new information on small business health insurance options. 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, small businesses are struggling to understand the Affordable Care Act (ACA) and how it will affect their budget. What all small businesses need to know about the ACA is there’s an opportunity for employers to get out of the health insurance business and still offer employees a valuable health benefit through defined contribution.
In this article, Zane Benefits summarizes how there will be massive premium tax subsidies available to eligible employees through their state health insurance marketplaces. But for an employer and employees to take advantage of these savings, the employer cannot offer traditional health insurance. To take advantage of these savings and continue to offer health benefits, the employer needs to offer a "pure" defined contribution plan.
What employers with 50+ employees need to consider is that the employer tax penalty is just that... a fee. There is no other government penalty or repercussion for not offering health insurance. Think of it as a contribution to the tax subsidies employees will get through the health insurance marketplace. In light of this, many employers with over 50 employees are choosing to embrace the penalty and offer a pure defined contribution solution.
With a “pure” defined contribution solution, an employer would intentionally choose not to offer a group health insurance plan, plan to pay any applicable tax penalties, and provide employees a tax-free monthly allowance for healthcare expenses via a stand-alone HRA Plan.
In this arrangement, employees purchase coverage through their state individual health insurance marketplace and take full advantage of the new tax subsidies. If an employee is eligible, these tax credits will cap the cost of his or her family’s health insurance at 2 - 9.5% of household income.
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.