Data from Zane Benefits’ 2017 annual Small Business Health Insurance Reimbursement Report was featured in a recent article in Accounting Today, a trade publication serving public accountants in the United States.
The article, “Small accounting firms struggling with health insurance,” uses the report to explain how some CPA practices are using health insurance reimbursement to cut costs while providing better benefits to employees.
Based on Zane Benefits customer data, the report found that CPA firms using health reimbursement plans offered employees an average of $489 a month to spend on health insurance in 2016—a 14 percent increase since 2015.
This approach provides coverage to employees and, in some cases, “offer[s] them more benefits,” the article says.
We’ve included an excerpt from the article by Michael Cohn, editor in chief of Accounting Today, below. Click here for the full story.
Employee benefits provider Zane Benefits issued a report Tuesday based on a survey of its customers and also drawing on industry data. ...
Small CPA firms (those with between two and five employees) provided monthly allowances 15 percent larger than the allowances of larger firms with between 11 and 25 employees. Employees of CPA firms spent an average $415 percent month, or 85 percent of the allowance from their employer.
CPA firms using health reimbursement plans spent 24 percent less on single employees and 56 percent less on employees with a family every month, compared with group health insurance. The average allowance covered 100 percent of the average employee’s premium cost, compared with group plans that cover 82 percent of the premium.
The use of health reimbursement arrangements by CPA firms and other businesses may expand, thanks to legislation passed by Congress last December. The 21st Century Cures Act eliminated a tax penalty on employers who reimburse employees for the cost of health insurance premiums.
Click here to read the full article and click to download the report below.