Makes Health Benefits Affordable for Every Small Employer

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New ZanePOP solution allows businesses to offer health benefits at zero net cost

HRA, Defined Contribution, POP
ZanePOP is like a super-flexible FSA for individual health insurance premiums

Zane Benefits Inc. unveiled today a new web-based product that makes offering health benefits easy and affordable for every employer. Combining new Treasury regulations with online software, ZanePOP allows employees to use their pre-tax salary to pay for individual health insurance policies, reducing the cost of their individual health insurance by 20-40%.

“The majority of small businesses do not offer any health benefits due to cost,” said Professor Paul Zane Pilzer, the founder of Zane Benefits. “Many of their employees purchase health insurance in the individual market, and now these employees can receive the same tax, administrative and cash-management benefits as employees who participate in an employer group plan.”

A Growing Individual Health Insurance Market with New Regulations:
New health benefit solutions are needed today because companies are dropping group health insurance plans due to cost. Employees without access to an employer-provided plan purchase health insurance in the individual market directly from a carrier—the individual health insurance market has grown from covering 12 million Americans in 2002 to covering 35 million Americans in 2010. However, until now, these employees have been forced to pay for their individual policies with after-tax dollars.

Since the 1970s, employees participating in employer-provided group plans have been allowed to pay their employee share of the premium with pre-tax salary reductions via cafeteria plans. New 2009 U.S. Treasury regulations allow employees to similarly use salary-reduction cafeteria plans to pay for their individual health insurance. ZanePOP, which Pilzer describes as “super-flexible spending account (FSA) for individual health insurance premiums”, is the first IRS-, ERISA- and HIPAA-compliant product allowing employers and their employees to take advantage of these new regulations.

How ZanePOP Works:
With ZanePOP, employees increase their take-home pay by reimbursing themselves with pre-tax salary for the amount of their individual health insurance premiums. This saves each employee 20-40% on their individual health insurance costs. It also saves the employer 7.65% in FICA on each dollar reimbursed through the plan.

All reimbursements are disbursed tax-free in conjunction with the company’s existing payroll services. An employee paying 35% in wage and income taxes who spends $300 per month on individual health insurance would save $105 (35% x $300) per month on his health insurance costs. This adds up to $1,260 more take-home pay per year.

ZanePOP is available now at and from authorized insurance agencies in every state.

About Zane Benefits:
Zane Benefits, Inc. ( is a leading provider of defined contribution health benefit programs for employers and employees. Zane Benefits does not sell health insurance. Its products and services are distributed by licensed agents and other distributors of health insurance who receive direct online and telephone access to help employees choose the best health insurance.

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Rick Lindquist
Zane Benefits Inc.
800-391-9209 ext. 6717
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