Defined Contribution and Private Health Exchanges Enable Client Retention
Small employers are increasingly canceling group health benefits for 2012. Zane Benefits, Inc. is partnering with local brokers to offer these clients defined contribution solutions with new private health exchange technology.-Health Insurance Premium Reimbursement
Overview of the Private Health Exchange Market
Approximately 50% of U.S. small businesses with less than 50 employees do not offer group health insurance to their employees. This figure is expected to greatly increase in 2012 due to:
1. Employer Contribution Requirements – Insurance companies require a minimum percentage of the premium for each employee that must be paid by the employer, or the entire plan is cancelled;
2. Employee Participation Requirements – Insurance companies require a minimum percentage of employees join the group plan, or the entire plan is cancelled; and
3. Cost per Participant – Group health plans for 2012 are facing the greatest increase in the history of U.S. health benefits, due to increasing health care costs and new coverage requirements imposed by ACA (Health Care Reform).
Zane’s Private Health Exchange technology platform directly addresses each of these issues.
With the Zane defined contribution platform, there is:
1. No Employer Contribution Requirement – The company sets a fixed dollar amount that it wishes to contribute to each class of employee.
2. No Employee Participation Requirement – The company sets its own eligibility and participation requirements. The plan can be active even if only 1 employee participates.
3. Much Lower Cost Per Participant with No Employer Minimum Premium Contribution – Individual health policies typically cost less than half the cost of equivalent group coverage for healthy employees, and new options, such as PCIP, are now available for employees who don’t qualify due to pre-existing medical conditions.
A defined contribution program must include all legal documentation to ensure compliance with applicable regulations. Zane Benefits provides an IRS, ERISA, and HIPAA-compliant platform that includes electronic plan document creation and employee election processes.
“What makes the Zane program unique is that once an employer determines the defined contributions, the employees work with the broker to select an individual health plan,” says Sam Clarke of Zane Benefits. “The employer’s role is limited to reimbursing employees using their existing payroll system, which typically takes less than 3-5 minutes per month.
“One of the more exciting features of the Zane platform is its seamless integration and compliance with up-and-coming health reform ideas. There will be massive financial incentives in the upcoming years for employers to switch to defined contribution platforms, and Zane Benefits is at the forefront of providing this solution.”
About Zane Benefits, Inc. Private Health Exchange
Zane Benefits is a national leader helping solve one of our nation’s major problems—getting employees better health benefits at lower cost. Zane Benefits accomplishes this by providing employers an online SaaS platform that allows employees to make all their own spending decisions. The company is particularly poised to benefit from Health Care Reform and was recently featured on the front page of The Wall Street Journal.
Employers - Click here to learn more.
The Zane Benefits affiliate program provides a unique solution to the biggest challenge facing most insurance agents – policy cancellations. The Zane Affiliate Program gives agents the ability to retain clients who are cancelling group health insurance policies due to high cost or low participation.
Insurance Professionals - Click here to learn more.