July 09, 2012
Zane Benefits, which provides businesses with comprehensive and flexible health benefits alternatives, today published information for employers who are analyzing their current health benefits strategy. This change minimizes the moral obligation of employers to offer health benefits to employees with pre-existing conditions. American Health Benefits Exchange.
Individuals with household incomes below 400 percent of the federal poverty line (approximately 68% of the U.S. population) will receive subsidies that cap their out-of-pocket health insurance expenses as a percentage of income on a sliding scale. In many cases, a household's tax penalty will roughly equal the household's cost of the minimum “essential” individual health insurance (minus subsidies) available in the Exchange. In most cases, it will make most economic sense to purchase health insurance vs. paying the penalty. In 2014, defined contribution health plans will become the ideal solution for most employers due to the following:
(A) Individual policies will become guaranteed issue, and eliminate the non-economic (i.e. moral) factors from an employer’s decision-making process.
(B) Most employees will pay less for health insurance on the individual market due to federal subsidies.
(C) For most employers, the total cost of paying the employer penalty (assuming the employer has more than 50 FTEs), and providing defined contributions to keep employees whole, will be less than the total cost of providing “affordable” group health insurance.
About Zane Benefits, Inc.
Zane Benefits, Inc, a software company, helps insurance brokers, accountants, and employers take advantage of new defined contribution health benefits and private exchanges via its proprietary SaaS online health benefits software...Using Zane’s platform, insurance professionals and accountants offer their clients a defined contribution plan with multiple individual health insurance options via a private health exchange of their choice.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/7/prweb9681751.htm