The only way for employers to give employees access to the individual premium tax subsidies is by not offering group health insurance
Park City, Utah (PRWEB) July 18, 2013
Today, Zane Benefits, the online alternative to group health insurance, published new information on tax subsidies and defined contribution.
According to Zane Benefits’ website, the biggest kept secret of the Affordable Care Act (ACA) is the individual premium tax subsidies that will be available to the majority of employees through the new state marketplaces starting January 1, 2014. Because of the new individual tax subsidies, the best decision for most companies and employees in 2014 will be to eliminate their company-sponsored group health insurance in favor of a defined contribution health plan solution.
Zane Benefits’ website offers five strategic issues that HR professionals need to know about the individual premium tax subsidies and defined contribution health plans.
#1) Group health insurance costs too much
As most HR professionals are intimately familiar with, group health insurance costs have been rising significantly over the last decade.
#2) Individual premium tax subsidies in 2014
The individual premium tax subsidies will cap the amount of employees' health insurance at 2% to 9.5% of household income, depending on the employee's income.
#3) All employees will be approved for coverage
Starting in 2014, employees cannot be denied coverage because of a pre-existing health condition.
#4) "Pure" defined contribution model lets you get out of the health insurance business, and focus on your business
According to Zane Benefits’ website, employees purchase their own individual policy directly from a health insurance company of their choice, through an insurance broker, or through their state health insurance marketplace. Employers provide a defined monthly allowance to reimburse employees on their individual health insurance costs or other medical expenses.
#5) No penalties for small businesses not offering traditional coverage
According to Zane Benefits’ website, for small businesses with fewer than 50 FTE employees, there is no employer mandate, and thus, no tax penalties for not offering traditional coverage. And, for many companies with 50+ FTE employees (who are subject to the employer mandate and penalties for not offering traditional coverage), the total cost of paying the applicable employer tax penalty plus providing a defined contribution health benefit will be less expensive than group health insurance.
Click here to read full article.
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About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHRA") for Health Reimbursement Arrangements (HRAs) and defined contribution health care. The flagship software provides a 100% paperless administration experience to small businesses and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about ZaneHRA, visit http://www.zanebenefits.com. Reported by PRWeb 5 hours ago.
Park City, Utah (PRWEB) July 18, 2013
Today, Zane Benefits, the online alternative to group health insurance, published new information on tax subsidies and defined contribution.
According to Zane Benefits’ website, the biggest kept secret of the Affordable Care Act (ACA) is the individual premium tax subsidies that will be available to the majority of employees through the new state marketplaces starting January 1, 2014. Because of the new individual tax subsidies, the best decision for most companies and employees in 2014 will be to eliminate their company-sponsored group health insurance in favor of a defined contribution health plan solution.
Zane Benefits’ website offers five strategic issues that HR professionals need to know about the individual premium tax subsidies and defined contribution health plans.
#1) Group health insurance costs too much
As most HR professionals are intimately familiar with, group health insurance costs have been rising significantly over the last decade.
#2) Individual premium tax subsidies in 2014
The individual premium tax subsidies will cap the amount of employees' health insurance at 2% to 9.5% of household income, depending on the employee's income.
#3) All employees will be approved for coverage
Starting in 2014, employees cannot be denied coverage because of a pre-existing health condition.
#4) "Pure" defined contribution model lets you get out of the health insurance business, and focus on your business
According to Zane Benefits’ website, employees purchase their own individual policy directly from a health insurance company of their choice, through an insurance broker, or through their state health insurance marketplace. Employers provide a defined monthly allowance to reimburse employees on their individual health insurance costs or other medical expenses.
#5) No penalties for small businesses not offering traditional coverage
According to Zane Benefits’ website, for small businesses with fewer than 50 FTE employees, there is no employer mandate, and thus, no tax penalties for not offering traditional coverage. And, for many companies with 50+ FTE employees (who are subject to the employer mandate and penalties for not offering traditional coverage), the total cost of paying the applicable employer tax penalty plus providing a defined contribution health benefit will be less expensive than group health insurance.
Click here to read full article.
--
About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHRA") for Health Reimbursement Arrangements (HRAs) and defined contribution health care. The flagship software provides a 100% paperless administration experience to small businesses and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about ZaneHRA, visit http://www.zanebenefits.com. Reported by PRWeb 5 hours ago.