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Defined Contribution: A Healthcare Win for Brokers, Employers & Employees - Zane Benefits Publishes Information
Date:12/6/2012

(PRWEB) December 06, 2012

Zane Benefits, the leader in Defined Contribution Healthcare, Health Reimbursement Arrangements (HRAs), and Private Health Exchanges, today published information outlining why Defined Contribution helps brokers, employers and employees at the same time.

Employers need a competitive health benefits program to recruit and retain top employees, but traditional employer-sponsored health insurance has become unaffordable. As a result, businesses of all shapes and sizes are considering offering “healthcare reimbursements” vs. “health insurance” rather than reducing or cutting out benefits completely. Similar to employers’ recent shift to from “defined benefit” pension plans to “defined contribution” 401k plans in the retiree benefit space, defined contribution healthcare plans are becoming an attractive alternative to traditional “defined benefit” employer health insurance plans.

With a defined contribution healthcare plan, a company utilizes a health reimbursement arrangement (HRA) to reimburse its employees tax-free for individual health insurance premiums and other covered medical expenses, such as doctor visits and prescription medications. The employer makes available to each employee a fixed HRA dollar amount (aka “defined contribution”), which can vary by employ
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