Small Business Employee Benefits and HR Blog

McKinsey and Defined Contribution

June 27, 2011

It’s amazing that this has taken “McKinsey” to get proper national attention.

business in a boxSince 2006, we’ve helped tens of thousands of small employers who dropped their group plan give employees tax-free funds to purchase their own individual policies. Our business has grown 400% since 2010 when children and some others received guaranteed coverage regardless of preexisting conditions, and now the largest employers in the U.S. are adopting our software to administer their own defined contribution plans by 2014. 

The math is simple. An employer can pay $20,000 a year for coverage for a family of four earning $40,000 a year, or give that same employee $1,600 a year to purchase the exact same coverage from exchanges offering subsidized individual policies—the 2010 health care reform caps the employee contribution at 4% of their income.

Paul Zane Pilzer 
Founder, Zane Benefits

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