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Zane Benefits Publishes New Information for Small Businesses on Health Insurance
Date:6/14/2013

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.

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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.

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