Healthcare Blog

Posts tagged "section 105"

What is Zane Benefits?

Zane BenefitsHere at Design Health we partner with a company called Zane Benefits. As we continue to look at and promote small businesses I wanted to introduce you to one that is on the cutting edge of what healthcare is and will be. As group health insurance fades away you will see Zane Benefits name more and more often. What’s so innovative and great about this company and who are they? Let me tell you with their own introduction from their website, “Zane Benefits is the leader in individual health insurance reimbursement for small businesses. Since 2006, Zane Benefits has been on a mission to bring the benefits of individual health insurance to business owners and their employees.”

This company enables companies to save 20 to 60 percent annually compared to traditional employer-provided health insurance. That’s significant as the cost of group health keeps rising. How do they do that? Instead of companies providing a one size fits all plan to their employees and compensating them for all or a portion of the premium employees are now able to find insurance that fits their needs and cost on their own. Once the employee has chosen the plan that is best for them their company works with Zane Benefits to set up monthly healthcare allowances for each employee. The employee then supplies documentation to Zane Benefits to prove the healthcare they purchased is in compliance and once all documentation checks out the employee receives the reimbursement amount set by the company up to the full amount of the employees premium.

This is such a simple concept and one that is being embraced by many employers around the country. As a small business owner do you want your employees to have more choice as well as lessen the weight of rising group health costs on your back? It’s a new way of doing things and it’s better to be on the cutting edge of change rather than straggling in the door behind the curve. We are happy to speak to you about your options as a company. Let us know if you have any questions, and in the meantime check out Zane Benefits HERE

 

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Posted by Lauren Yeager in All Posts, Small Business and tagged , , , ,

What Is A Section 105 Plan?

Health insurance When the Affordable Care Act (ACA) was passed there was a lot of confusion on what companies could or could not pay for when it came to individuals health insurance plans. As employer sponsored health plan prices continue to rise companies needed another option. A section 105 plan enables employers to reimburse employees tax-free for their own individual health plan.

According to Zane Benefits, “Section 105 plans are a tax-advantaged employee benefit as outlined in the Internal Revenue Code section 105.” For an employer this means, reimbursements are tax-deductible and payroll taxes (FICA/FUTA) are lowered. This option is much better than offering employees a taxable raise that end up costing the company more to compensate for the taxes.  This ends up saving money for both employees and business owners, making it the perfect solution for small business health insurance.

As an employer there could be worry that an employee is taking advantage of the section 105 plan because the company no longer has knowledge of the health plans chosen by employees. With this type of plan an employee may only be reimbursed if they provide proof of their premium payment. Then the employee is reimbursed up to a set amount by the employer. This still gives control to the employer allowing them to decide what the money is spent on.

A section 105 plan is also tax free for the employee. As an employee enrolls in a qualified ACA health plan they are then no longer subject to the tax penalty at the end of the year for not having health insurance. Moreover they are paying for part or all of their health plan premium from the reimbursable funds given to them by their employer.

Do you have any other questions on sections 105 plans? Let us know and we would be happy to answer them.

Read the full article on Zane Benefits HERE

 

 

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Posted by Lauren Yeager in All Posts, Did You Know?, Health Insurance and tagged , , ,