A Guide to the  Future of HealthInsurance for Small Business.
•    HEALTH INSURANCE: PAST AND PRESENT•    DEFINED CONTRIBUTION VS. GROUP HEALTH•    ZANE BENEFITS DEFINED CONTRIBUTION O...
Less Than 50% of Small Businesses        Offer Group Health. Why?Cost     61%Other    20%Too Small 13%Turnover 6%     That...
“CREATION  OF “MODERN” HEALTH CARE             OCCURRED AFTER WORLD WAR II           PRE-WWII                             ...
TAX ADVANTAGES FOR GROUP VS. INDIVIDUAL COVERAGE Group policies enjoyed enormous tax advantages                over indivi...
FEDERAL GOVERNMENT GIVES TAX PARITY       TO INDIVIDUAL POLICIES       2002: HRAS                 2009: PRAS      Health R...
DEFINED CONTRIBUTION                               GROUP INSURANCENo Minimum Contribution                       Requires M...
THE EMPLOYER…                  THE EMPLOYEES…1.  Determines Contributions   1.  Purchase Individual Policies2.  Sets Eligi...
“HEALTHCARE REFORM FAVORS DEFINED CONTRIBUTIONBEFORE 2014                                 AFTER 2014¨    Medical Underwri...
"U.S. health care reformsets in motion the largestchange in the post WorldWar II era”60% of educated employersplan to purs...
Clients in All 50 United States | 99% Client RetentionDistributed Nationally by Leading Brokers, Insurers, & Payroll Compa...
THE FUTURE OF HEALTH BENEFITS IS NOW.  REQUEST A FREE DEMO: ZaneBenefits.com/request-a-demo         LEARN MORE: http://www...
Guide to Defined Contribution Health Plans
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Guide to Defined Contribution Health Plans

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Introduction to defined contribution health plans: http://www.zanebenefits.com/

Defined Contribution Health Benefits is the future of small business health insurance. Follow along with the Zane Benefits team as we outline the past, present and future of small business health.

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Guide to Defined Contribution Health Plans

  1. 1. A Guide to the  Future of HealthInsurance for Small Business.
  2. 2. •  HEALTH INSURANCE: PAST AND PRESENT•  DEFINED CONTRIBUTION VS. GROUP HEALTH•  ZANE BENEFITS DEFINED CONTRIBUTION OVERVIEW•  PROBLEMS DCHB CAN SOLVE•  FUTURE OF EMPLOYER INSURANCE•  MCKINSEY STUDY
  3. 3. Less Than 50% of Small Businesses Offer Group Health. Why?Cost 61%Other 20%Too Small 13%Turnover 6% That’s 3,000,000 SmallBusinesses without Group Health
  4. 4. “CREATION OF “MODERN” HEALTH CARE OCCURRED AFTER WORLD WAR II PRE-WWII POST-WWII¨  Limited Employer Involvement ¨  Wage & Price Controls (1941-1947)¨  Catastrophic Health Insurance World ¨  Employer-Sponsored Health¨  Local BC/BS War II Care Exempt from Income¨  Individual / Family Driven Taxes HUGE Cost Advantage to Employer System
  5. 5. TAX ADVANTAGES FOR GROUP VS. INDIVIDUAL COVERAGE Group policies enjoyed enormous tax advantages over individual plans:1.  Employers allowed to pay for group health insurance “off the books”2.  Employees allowed to pay (via salary reduction) for group health insurance “off the books”
  6. 6. FEDERAL GOVERNMENT GIVES TAX PARITY TO INDIVIDUAL POLICIES 2002: HRAS 2009: PRAS Health Reimbursement Premium Reimbursement Arrangements for Employer Arrangements for Employee Tax-Free Contributions Tax-Free Contributions DEFINED CONTRIBUTION HEALTH BENEFITS
  7. 7. DEFINED CONTRIBUTION GROUP INSURANCENo Minimum Contribution Requires Minimum Contribution business determines its own contribution employers must contribute 50%-75% of strategy premiumNo Minimum Participation Requires Minimum Participation business sets its own eligibility 50%-75% of employees must participate requirements in the planNo Administrative Hassle Requires Additional Admin spend less than 5 minutes per month requires paperwork & annual renewals
  8. 8. THE EMPLOYER… THE EMPLOYEES…1.  Determines Contributions 1.  Purchase Individual Policies2.  Sets Eligibility 2.  Get an Explanation of Benefits from3.  Picks Start Date the Insurance Company (nothing4.  Reimburses Employees paid out of pocket) 3.  Submit Claims & Get Reimbursed
  9. 9. “HEALTHCARE REFORM FAVORS DEFINED CONTRIBUTIONBEFORE 2014 AFTER 2014¨  Medical Underwriting ¨  No Medical Underwriting¨  No Federal Subsidies for 2014 ¨  Federal Subsidies for REFORM Individual Policies Individual Policies¨  Employer-Driven ¨  Individual/Family Driven HUGE Cost Advantage for Individual System
  10. 10. "U.S. health care reformsets in motion the largestchange in the post WorldWar II era”60% of educated employersplan to pursue alternativesto offering health insuranceincluding "definedcontribution”Parallels shift to 401ks
  11. 11. Clients in All 50 United States | 99% Client RetentionDistributed Nationally by Leading Brokers, Insurers, & Payroll Companies
  12. 12. THE FUTURE OF HEALTH BENEFITS IS NOW. REQUEST A FREE DEMO: ZaneBenefits.com/request-a-demo LEARN MORE: http://www.zanebenefits.com/products Let’s Connect! Subscribe to ‘Clarifying Health’: www.zanebenefits.com/blog Thank You!DISCLAIMERThe information provided herein by Zane Benefits is general in nature and should not be relied on for commercial decisionswithout conducting independent review and analysis and discussing alternatives with legal, accounting, and insurance advisors.Furthermore, health insurance regulations differ in each state; information provided does not apply to any specific U.S. stateexcept where noted. See a licensed agent for detailed information on your state. www.ZaneBenefits.com
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