Zane Benefits, Inc. unveiled its new website designed to educate employers, accountants and health insurance professionals about the new federal regulations allowing simplified employer health benefits.
The defined contribution health plan on ZaneBenefits.com allows an employer to name the price. Rather than paying the costs to provide a specific group health plan, employers instead fix their costs by establishing a monthly dollar amount that employees choose how to spend.
Employers make available a tax-free monthly allowance that employees use to purchase their own individual policy directly from a carrier or independent licensed health insurance agent. Or, if an employer is not able to provide an allowance for certain employees, such employees may use a portion of their pre-tax salary to purchase a policy. This increases the employee's after-tax purchasing power by 20 to 40 percent and also reduces the company's payroll liabilities.
Features of the online program include:
- No minimum contributions requirements
- No minimum participation requirements
"It's time to reshape the way we think about employee health benefits,” said Rick Lindquist, president of Zane Benefits. “Today, more than 3 million small businesses do not offer health benefits to their employees due to cost, participation, or administrative requirements. And, that number is expected to increase by 2014 regardless of health care reform."