Front page business section story on Defined Contribution Employer Health Benefits
After he [Berneche] canceled the group plan, he...signed on. Cardinal puts $100 to $200 a month into each employee's health reimbursement account. Even if Berneche carries out his plan to nearly double the size of his company, he still expects to save at least $360,000 this year with the new program.
Many employees were able to buy individual policies for less than the monthly amount put in by Cardinal, Berneche says. The money also can be used for eyeglasses, dental care and other medical expenses.
"This may be the future of health insurance," says Trikolas, CEO of Ilios Partners in Chicago, which plans to switch its 100 employees from group to individual coverage this year.
We have employees who have families with young kids, some have older kids and some employees are single," Davis says. "Those scenarios present widely varying health care needs. Something like this gives us and our employees a little more flexibility.
About Zane Benefits, Inc.
Zane Benefits, Inc., a software company, helps employers, insurance brokers, and accountants take advantage of new defined contribution health benefits via its proprietary SaaS defined contribution software ("ZaneHealth"). Zane Benefits does not sell insurance. Using Zane’s platform, insurance professionals and accountants offer their clients a custom defined contribution plan. Learn more at www.zanebenefits.com.
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.