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Zane Benefits Publishes New Information on Defined Contribution Health Plans
Date:5/12/2013

llowance. Employees shop and purchase their own individual/family coverage through a broker or through their state health insurance exchange. Employees are reimbursed tax-free up to the amount of their monthly allowance.

In other words, a defined contribution health plan acts like a business expense account specifically for health insurance premiums and health care.

How to Lower Health Benefits Costs with Defined Contribution

According to Zane Benefits’ website, lowering health benefits costs with defined contribution is simple: a business determines their budget for health benefits and builds the defined contribution health plan from there. In other words, because there are no minimum or maximum contribution amounts the cost of defined contribution is entirely controlled by the business.

Similar to a 401(k) retirement plan, a defined contribution health plan must include all legal documentation to ensure compliance with applicable regulations. Because of this, nearly all businesses use a defined contribution software or administrator. The administration platform needs to be an IRS, ERISA, ACA and HIPAA-compliant platform that includes electronic plan document creation and employee election processes.

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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 traditio
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