Healthcare Blog

Posts tagged "zane benefits"

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 , , , ,

Common Misconceptions with Defined Contribution

QuestionThere are common misconceptions with defined contribution plans as to their legality and how to set them up to comply with regulations. One of the common questions comes from understanding that the employer is not directly paying for an employee’s individual health insurance. When a company sets up a defined contribution plan it must be compliant with IRS, ERISA, HIPPA, and ACA guidelines. We typically recommend using an administrator when setting up these plans. So why do you need to set up a formal plan to be in compliance versus giving the employee funds directly?

To maintain compliance employers aren’t involved in the employee’s decision to choose their individual health policy, the employer does not directly pay for the insurance premium, and the employer is not involved in any communication between the individual and the insurance company. When following the above guidelines it allows the employer to contribute to an individual health insurance plan maintaining compliance with federal law.

In a defined contribution plan employers are able to give employees different contributions based on their class or position within the company. This class can be based on job categories, geographic location, part-time or full-time status, etc. A class must treat all employees equally, to avoid discrimination. These classes are defined by the employer in an ERISA plan document before the defined contribution plan is put into place.

We have found Zane Benefits is one of the best at administering defined contribution plans. Zane offers a FAQ sheet on their website HERE. For more common misconceptions and answers visit their website. What are some of your biggest questions when it comes to Defined Contribution?

 

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Posted by Lauren Yeager in All Posts, Did You Know?, Health Insurance, In The News, Small Business and tagged , , , ,