Group healthcare represents uncertain costs--it's an open-ended obligation... With these plans, your premiums increase any time an employee, their spouse or children get sick. Individual plans, on the other hand, are permanent. Once you have one, your premiums can't be raised due to illness or claims history.
In 2005, the federal government made it possible for businesses to offer health reimbursement arrangements (HRAs), which paved the way for business owners to offer individual plans. Through HRAs, you can offer ‘defined contribution healthcare,’ giving your employees a fixed amount of money to buy their own policy, Pilzer says. And your contribution is completely tax-deductible to you and non-taxable to your employees.”
Group plans were once considered much more inexpensive and efficient than individual plans. “Group healthcare represents uncertain costs—it’s an open-ended obligation,” notes Pilzer. “With these plans, your premiums increase anytime an employee, their spouse or children get sick."
State-guaranteed coverage...used to be called ‘state risk pool’ coverage,” states Pilzer. “In almost all states, it’s the same coverage you would buy in an individual policy—so business owners can still offer these people coverage—but it costs about twice the price only for the sick person in your family.
About Zane Benefits, Inc.
Zane Benefits, Inc. is a leading provider of Health Reimbursements Arrangements and Accounts (HRAs) and Defined Contribution Health Benefits
to U.S. employers and their employees. With Zane's HRA, employers open and manage their HRA completely online and manage reimbursements via their existing payroll system.
Zane Benefits does not sell health insurance. Its products and services are distributed in all 50 states by independent licensed agents and other distributors of health insurance who receive direct online and telephone access to help employees choose the best insurance policy.
Economist Paul Zane Pilzer is the founder of Zane Benefits, a former Vice President of Citibank and the founder of five companies. He is a former commentator on CNN and NPR and was an Adjunct Professor at New York University from 1979-2000. He holds a BA from Lehigh University and an MBA from The Wharton School, University of Pennsylvania.
Zane Benefits products and services are distributed in all 50 states by leading employers, consultants, agents, general agencies, payroll providers and PEOS.
Visit www.zaneaffiliates.com or more information on Zane Benefits programs for insurance agents.