Navigation Links
Zane Benefits Publishes Information About Large Companies Switching to Defined Contribution & Private Exchanges for Employee Health Benefits
Date:12/17/2012

(PRWEB) December 17, 2012

Zane Benefits, the leader in Defined Contribution and Health Reimbursement Arrangement (HRA) solutions for business health benefits, today published information about Sears Holding Corp.'s switch to Defined Contribution and Private Health Insurance Exchanges for its employees.

According to the Wall Street Journal, Sears Holdings Corp. has joined the ranks of thousands of businesses small and large, by announcing it will move to a Defined Contribution model for employee health benefits in 2013. Through the plan, Sears will allocate a fixed dollar amount for employees and their dependents to purchase health insurance through a private health exchange.

The goal of the shift is to combat the rising cost of providing health benefits to Sears’ 90,000 eligible employees.

The cost per participant under traditional group health plans is on the rise. Employers are also feeling the pinch from minimum requirements such as the minimum percentage of the premium that must be paid by the employer, and the requirement that a minimum percentage of employees join the group plan. If either of those minimums is not met, the entire plan is canceled.

THE DEFINED CONTRIBUTION MODEL

Under the new plan, Sears will be able to cap their monthly health benefits cost per employee by giving a fixed dollar amount (the “defined contribution”) to each employee. Each employee will choose a health insurance plan on the private exchange that works for them, their spouses, and their dependents.

For decades, U.S. employers have been offering a one-size-fits-all plan with benefits that some employees may not need. Defined Contribution gives employees more choice and mitigates an employer's financial risk from unexpected claims. 

THE PRIVATE HEALTH EXCHANGE

The states and feds may still be hashing out the details of the state health exchanges, but businesses like Sears are pushing private exchanges forward. Sears employees will now have 15 choices for health insurance instead of the existing 4. Coverage options are available from five different medical insurers.

The objective of providing more choice through an exchange is to create competition and drive prices down for the policyholders.

"The more insurance providers compete, the better," said Chris Brathwaite, spokesman for Hoffman Estates-based Sears. "I will have an opportunity to shop for a health care provider who meets my medical and my pocketbook needs."*

Sears has not revealed how much it will allot for employees, but the amount will generally cover the insurance premium of one of the plans under the exchange. Depending on the amount and class of employee, employees could be responsible for paying a portion of the remainder of expenses they incur. All of the available plans provide catastrophic protection and cannot reject people for medical history or pre-existing conditions.

HEALTH REFORM & COMPANIES' DEFINED CONTRIBUTION SHIFT

It is anticipated that more companies will adopt the Defined Contribution healthcare model as they are faced with rising expenses as 2014 nears. 

"The best decision for most employers and their employees will be to eliminate their company-sponsored health insurance in favor of a defined contribution HRA solution," says renowned economist and Zane Benefits founder, Professor Paul Zane Pilzer

"That’s because employees no longer need employers to purchase quality health insurance, and, starting in 2014, employees earning less than 400% of the FPL (~$92,000 for a family of four) per year who purchase a personal policy will receive a large federal subsidy on their premium if their company doesn’t offer a group plan."

As a result, all of the following Defined Contribution plans are expected to become mainstream:

(1) Health Reimbursement Arrangement (HRA)
(2) Medical Expense Reimbursement Plan (MERP)
(3) Fixed Contribution Plan 
(4) Section 105 Plan 

  • - -
About Zane Benefits, Inc.
Zane Benefits, Inc, a software company, helps insurance brokers, accountants, and employers take advantage of new defined contribution health benefits and private exchanges via its proprietary SaaS online health benefits software. Zane Benefits does not sell insurance. Using Zane’s platform, insurance professionals and accountants offer their clients a defined contribution plan with multiple individual health insurance options via a private health exchange of their choice.

Read the full story at http://www.prweb.com/releases/2012/12/prweb10178319.htm.


'/>"/>
Source: PRWeb
Copyright©2012 Vocus, Inc.
All rights reserved

Related medicine news :

1. Zane Benefits Publishes Section 125 Premium Only Plan (POP) Reimbursable Health Insurance Premiums
2. Kentucky Social Security Disability Benefits Lawyer with The Frank Jenkins Law Office Voices Support for Recent Expansion of Compassionate Allowance Program
3. More signs of the benefits of marriage?
4. Zane Benefits Publishes 5-Step Defined Contribution Evaluation
5. Why Health Insurance Brokers Need An HRA Administration Partner: Zane Benefits Publishes Info
6. Zane Benefits Publishes Health Care Reform Implementation FAQs
7. Probiotic Action Responds to an Article Discussing the Health Benefits of Probiotics
8. HRAs vs. GAP Health: Zane Benefits Publishes Information
9. Penalties for Individuals Not Purchasing Health Insurance in 2014 - Zane Benefits Publishes Information
10. ISA Surgical Publishes Real Stories of the Benefits of Medical Tourism In Mexico From US And Canadian Patients
11. Defined Contribution: A Healthcare Win for Brokers, Employers & Employees - Zane Benefits Publishes Information
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:12/10/2016)... ... December 10, 2016 , ... "TransPanel Volume 2 is a package ... said Christina Austin - CEO of Pixel Film Studios. , TransPanel Volume 2 ... . This set of versatile transitions features presets with up to 4 panels ...
(Date:12/10/2016)... ... December 10, 2016 , ... When faced with having to use a toilet ... seat to her body, and contamination of children when they use public toilets. This ... problem that many people face. , The patent-pending SANI-POCKET enables a person to use ...
(Date:12/9/2016)... ... December 09, 2016 , ... Cellairis is a worldwide mobile device and ... iPhone , iPad and Samsung Galaxy devices with premium parts and accessories. ... to maximize convenience and accessibility for customers. While customers do their shopping, Cellairis can ...
(Date:12/9/2016)... (PRWEB) , ... December 09, 2016 , ... The ... Drug Dependence, Inc. (NCADD) is recommending the film Whispering Spirits and ... the District of Columbia as an education tool in the war against teen drug ...
(Date:12/9/2016)... New York, NY (PRWEB) , ... December 09, 2016 , ... ... that raises awareness for organ transplantation while encouraging readers to sign up as an ... for a lifesaving organ transplant. , An organ donor can save up to ...
Breaking Medicine News(10 mins):
(Date:12/8/2016)... -- Research and Markets has announced the addition of the ... ... report analyzes the worldwide markets for Endodontic Supplies in US$ Thousand. The report ... Japan , Europe , Asia-Pacific ... Annual estimates and forecasts are provided for the period 2015 through 2022. Also, ...
(Date:12/8/2016)... 8, 2016 Bodycad announced it has ... the accuracy, reproducibility and speed for 3D constructs ... small bone orthopaedic applications. These patents are critical ... orthopaedic restorations based on each patient,s distinct anatomy. ... company harnesses the world,s first suite of orthopaedic ...
(Date:12/8/2016)... , Dec. 8, 2016 True ... that brings leading-edge laboratory services and management expertise ... States , allowing more doctors and patients ... care management solutions. Logo - ... Hospital systems, under pressure to contain costs, ...
Breaking Medicine Technology: