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Zane Benefits Publishes New Information on Pure Defined Contribution Health Models
Date:11/1/2013

Park City, Utah (PRWEB) November 01, 2013

Today, Zane Benefits, the number one online small business health benefits solution, published new information on pure defined contribution health models.

According to Zane Benefits’ website, for decades, the norm in the U.S. has been that health insurance is purchased and offered in a certain way -- by the employer. And yet, many industry experts agree that health benefits are shifting away from a defined benefit health model to a defined contribution health model.

With the purest form of defined contribution, employers offer employees a health insurance allowance as the benefits package. Employees purchase an individual policy of their choice, often with the help of a health insurance broker, and are reimbursed by the employer.

A defined contribution health model allows an employer to control its costs on a monthly basis by setting monthly health insurance allowances. Here are the top two wins for employers.

  • Controllable Costs – There are no minimum or maximum contribution requirements, and employers can vary employee contributions based on job criteria.
  • More Time for Meaningful Work – Administering the health benefits program becomes a payroll function and requires minimal involvement from the employer.

According to Zane Benefits’ website, employees win with defined contribution because, rather than having a “one-size-fit-all” group plan that may or may not fit their family’s specific needs, they are able to choose an individual health insurance plan that works best for their family.


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