Zane Benefits, the leader in defined contribution health benefits, today announced a new Broker Partner program available to
New studies predict that U.S. businesses are gearing up to abandon traditional health coverage in favor of the defined contribution model. As a result, health insurers are already dusting off their once-ignored individual market product lines to appeal to individuals as well as employees. And, businesses of all sizes are looking to health reimbursement arrangements (HRAs) to control benefit costs while keeping employee morale and retention up.
Experts predict group health insurance costs to hit an all-time high this renewal period due to key health care reform provisions taking effect. Lindquist predicts that thousands of
Zane Benefits’ solution, often referred to as a defined contribution health plan or HRA, allows an employer to name its price. Rather than paying the high costs to provide a specific group health plan (a "defined benefit"), employers instead fix their costs by establishing a monthly dollar amount (a “defined contribution”) that employees choose how to spend. Most employees are able to buy individual policies for less than the monthly amount funded by the company. The allowance can also be used for eyeglasses, dental care and other medical expenses.
Individual health insurance used to be expensive and hard to get. However, due to health insurance reforms, individual policies are now more affordable and accessible. For example, insurance companies must now accept children regardless of preexisting conditions, and guaranteed acceptance is being extended to all citizens over the next year. Additionally, a new federal risk pool is now available for anyone who cannot find health insurance on the individual market.
Beginning in 2014, massive tax subsidies will be available to help individuals buy individual health insurance coverage through the new state-based public exchanges. Tax subsidies will be available, beginning in 2014, for individuals who enroll in silver plans through an exchange. This subsidy caps the cost of an individual’s health insurance at 2% - 9.5% of their household income if their household income is less than 400% above the federal poverty line (that’s
Lindquist goes on to say, “Our partner program will allow
How the Program Works:
To get started, insurance brokers should create a free partner account online. The online account gives agents immediate access to on-demand training, custom marketing brochures and Zane Benefits’ defined contribution healthcare experts.
Once the broker creates the online account, a New Business Manager at Zane Benefits will work with the broker to transition interested clients to the joint defined contribution solution. Zane Benefits does not sell health insurance or interfere with its partners’ existing insurance services.