Navigation Links
Zane Benefits Publishes New Information on Pure Defined Contribution Health Plans
Date:6/7/2013

Park City, Utah (PRWEB) June 07, 2013

Today, Zane Benefits, Inc. published new information on pure defined contribution health plans. Zane Benefits, which provides comprehensive and flexible alternatives to traditional employer sponsored health benefits, is the leader in defined contribution and health reimbursement arrangement plans.

According to Zane Benefits’ website, defined contribution health plans are fast becoming popular with small businesses as an alternative to group health insurance. With a "pure" defined contribution plan a business contributes a fixed dollar amount (a "defined contribution") toward employees' health care costs, including purchasing their own personal insurance policies.

The shift from employer sponsored plans (a "defined benefit") to defined contribution health plans is similar to the shift in retirement savings from pensions (a defined benefit) to 401Ks (a defined contribution). After realizing the savings associated with moving away from defined benefit retirement plans, many businesses are also applying this model to their healthcare benefit programs.

However, the term "defined contribution health plan" has become a buzzword in the industry, and doesn't always mean the same type of heatlthcare benefit. This article provides a definition of a "pure" defined contribution health plan.

Pure Defined Contribution Health Plan

According to Zane Benefits’ website, with a pure defined contribution health plan, the business offers health benefits in the form of a stand-alone Health Reimbursement Arrangement (HRA) instead of a group health insurance plan. The business simply uses the HRA to reimburse employees tax-free for their personal insurance policies (and other eligible medical expenses, as the business defines in their HRA plan).

Pure defined contribution health plans allow the business to get out of the insurance business. A pure defined contribution plan is not linked to a group health insurance plan. Rather, the defined contribution health plan is the business's health benefit.

According to Zane Benefits’ website, with a pure defined contribution health plan:

  • The business provides employees a fixed monthly allowance for health insurance premiums and other eligible medical expenses. No group health plan is offered.
  • Employees purchase their own individual health insurance premiums (often with the help of a broker or agent). Employees have unlimited choices in policies, and can purchase any type of plan from any carrier. Starting in 2014, employees can purchase policies through the new state health insurance marketplaces. Also, in 2014 all personal policies will be guaranteed-issue and massive individual premium tax credits will be available for plans purchased through the marketplaces.
  • Using HRA Software, employees submit their expenses and the business reimburses them tax-free on payroll, up to the amount available.

According to Zane Benefits’ website, defined contribution health plans provide the same tax benefits as a group health plan. However, one hurdle preventing some businesses to switch to a defined contribution health plan was key employees with a pre-existing condition. In 2014 this hurdle goes away. With guaranteed-issue policies starting in 2014 and massive tax subsides through the health insurance marketplaces, defined contribution health plans now have all the same benefits of a defined benefit (group health insurance plan), often at a much lower cost for the business and employees.

Click here to read full article.

--

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.

Read the full story at http://www.prweb.com/releases/2013/6/prweb10814382.htm.


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

Related medicine news :

1. Mesh Lawsuit News: Bernstein Liebhard LLP Comments on Study to Investigate Safety, Benefits of Boston Scientific Mesh
2. Taunton Attorneys Help Seekonk Man Receive over $78,000 in Past-Due Social Security Disability Benefits
3. Zane Benefits Publishes New Information on Employer's ACA Play or Pay Decision
4. Zane Benefits Publishes New Information on Utah Health Insurance Exchange
5. Zane Benefits Publishes New Information on Oregon Health Insurance Exchange Rates
6. Zane Benefits Publishes New Information on Virginia Health Insurance Exchange
7. Experimental Drug Shows Benefits Against Melanoma in Early Study
8. Zane Benefits Publishes New Information on Small Business Health Benefits
9. Zane Benefits Publishes New Guide on Health Care Reform Compliance
10. Experience the Benefits of DENTCA's 3D CAD/CAM Denture Solution in Action
11. Zane Benefits Publishes New Information on the Iowa Health Insurance Exchange
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/27/2016)... Viejo, California (PRWEB) , ... June 27, 2016 , ... ... are fully customizable inside of Final Cut Pro X," said Christina Austin - CEO ... another unique style. Final Cut Pro X users can now reveal the ...
(Date:6/27/2016)... ... June 27, 2016 , ... ... strategic partnership with Connance, a healthcare industry leader providing predictive analytics to ... technology combine to provide health systems, hospitals and ambulatory surgical centers with ...
(Date:6/27/2016)... Overland Park, KS (PRWEB) , ... June 27, 2016 , ... ... leader in retailers of Eyeglasses . , Millions of individuals in the United ... life, eyeglasses have become a way to both correct vision and make a fashion ...
(Date:6/26/2016)... ... 26, 2016 , ... On June 10-11, 2016, A Forever Recovery, a holistic ... World’s Longest Breakfast Table in Battle Creek, MI, where the rehabilitation facility is located. ... some of the world’s leading providers of cereal and other breakfast foods. Its residents ...
(Date:6/26/2016)... ... June 26, 2016 , ... PawPaws brand pet supplements ... that was developed to enhance the health of felines. The formula is all-natural and ... main herbs in the PawPaws Cat Kidney Support Supplement Soft Chews are ...
Breaking Medicine News(10 mins):
(Date:6/26/2016)... -- Jazz Pharmaceuticals plc (Nasdaq: JAZZ ) ... Improvements Act of 1976, as amended ("HSR"), with respect ... Nasdaq: CPXX ) expired effective June 24, ... As previously announced on May 31, 2016, Jazz Pharmaceuticals ... which Jazz Pharmaceuticals has commenced a tender offer for ...
(Date:6/24/2016)... HILL, N.C. , June 24, 2016 /PRNewswire/ ... healthcare decisions and regulators/payers have placed more emphasis ... new environment, patient support programs in the pharmaceutical ... for patients, medications. Consequently, pharmaceutical companies are focusing ... ensure they are providing products and services that ...
(Date:6/24/2016)... CAMBRIDGE, Mass. , June 24, 2016 /PRNewswire/ ... the Spaulding Rehabilitation Network,s Dean Center for ... of Physical Medicine and Rehabilitation, MIT Hacking Medicine, ... Center for Innovation, today announced the five finalists ... Hackathon for Lyme disease.  More than 100 scientists, ...
Breaking Medicine Technology: