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Why Your Small Business Clients Will Cancel Group Health Insurance in 2014 Webinar
 

Why Your Small Business Clients Will Cancel Group Health Insurance in 2014 Webinar

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Why small businesses are canceling group health insurance and the impact of health care reform on small businesses: http://www.zanebenefits.com/small-business-cancel-group-plans-webinar/ ...

Why small businesses are canceling group health insurance and the impact of health care reform on small businesses: http://www.zanebenefits.com/small-business-cancel-group-plans-webinar/

Webinar: Why Your Small Business Clients Will Cancel Group Health Insurance in 2014 Webinar... And how to retain them with a defined contribution and individual policy solution

With the opening of the new Health Insurance Marketplaces in October 2013, many small business clients will cancel their group health insurance policy in favor of individual health policy offerings and defined contribution ("HRA") plans.

Why? Because 1) Defined contribution and individual health policies will cost LESS than group health insurance, and 2) There is no tax penalty for not offering health insurance for small businesses.

If you do not offer your small business clients a defined contribution and individual health policy option, someone else will.

Health insurance professionals should attend this webinar to learn how to retain small business clients with an "individual-based" defined contribution solution.

During this 45-minute webinar you will learn:

- Why small businesses are canceling group health insurance
- The impact of health care reform on small business health insurance
- How Health Insurance Marketplaces work with defined contribution plans
- How to retain small business clients with "individual-based" defined contribution plans
- New opportunities for health insurance professionals

To view the recorded webinar, see: http://www.zanebenefits.com/small-business-cancel-group-plans-webinar/

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    Why Your Small Business Clients Will Cancel Group Health Insurance in 2014 Webinar Why Your Small Business Clients Will Cancel Group Health Insurance in 2014 Webinar Presentation Transcript

    • Why Your Small Business ClientsWill Cancel Group HealthInsurance in 2014... And how to retain them with a defined contribution andindividual policy solution
    • Zane Benefits is the online alternative to group health insuranceThe ZaneHRA Software provides a 100% paperless administration experience to employers and insuranceprofessionals that want to offer better health benefits without a traditional group health insurance plan at lower costs.For more information about ZaneHRA, check out our Software.Employers use ZaneHRA to open and manage their own stand-alone HRA or defined contribution health plancompletely online, electronically enroll participants and print welcome kits, and monitor expenses andreimbursements in real-time.Employees obtain their own individual health policies from a designated health insurance broker (see below),submit premium and medical expenses online, via fax, or mail, and receive same-day reimbursement via check,payroll addition, or direct deposit. Zane Benefits does not sell health insurance.Insurance Professionals partner with Zane Benefits and use ZaneHRA to provide clients with a cost-savinghealth benefits option. Insurance brokers earn compensation on ZaneHRA referrals and retain 100% of the healthinsurance compensation from carriers. ZaneHRA is distributed by leading health insurance carriers, agencies,brokers, and accountants.DISCLAIMERThe information provided herein by Zane Benefits is general in nature and should not be relied on forcommercial decisions without conducting independent review and analysis and discussingalternatives with legal, accounting, and insurance advisors. Furthermore, health insurance regulationsdiffer in each state; information provided does not apply to any specific U.S. state except wherenoted. See a licensed agent for detailed information on your state. www.ZaneBenefits.comFor additional resources onHealth Care Reform, visitwww.zanebenefits.com/blog
    • Agenda1. Why Small Businesses are Canceling Group Health Insurance2. The Impact of Health Care Reform on Small Business Health Insurance3. How Health Insurance Marketplaces work with Defined Contribution Plans4. How to Retain Small Business Clients with "Individual-Based" DefinedContribution Plans5. New Opportunities for Health Insurance Professionals6. Summary
    • Small Businesses, Group Health Insurance,and Defined Contribution
    • Group Health Insurance Costs Too Much!After payroll, group healthinsurance is the mostsignificant cost to anemployer.Unsustainable conditionsfor small businesses:1. 156% increase in costof single coverage2. 172% increase in costof family coverage3. Minimum contribution& participationrequirements
    • Why Group Health Insurance in the First Place?Businesses offer group health insurance to recruit and retainemployees...since World War II!Small business benefits of offering group health insuranceinclude:1. Contributions are tax-deductible for the business2. Employee contributions are pre-tax3. Guaranteed issue health insurance (i.e. employer moralobligation)Small Businesses are Canceling Group Health CoverageNow Because of a Benefits Shift...
    • The Benefits Shift - B2B to B2CHealthcare is shifting from abusiness-to-business (B2B) to a business-to-consumer (B2C) marketplace.PURE Defined Contribution expedites this shift.Are you prepared to help employeeschoose an individual health plan?If not, you may miss the opportunity...
    • The Impact ofHealth Reform on Small Businesses
    • Health Reform Provides the Incentive to Drop Group HealthEmployer Mandate - only "applicable large employers" need to complyA company is NOT an applicable large employer if the company:■ Employed less than 50 full-time equivalent employees on averageduring the previous calendar year, or■ Employed more than 50 full-time equivalent employees no more than120 days during the previous calendar year due to a seasonalworkforce.What are your small business clients options?1. Continue the status quo and offer group health insurance2. Drop group health insurance and do not offer employee health benefits3. Drop group health insurance and offer a defined contribution planHealth Reform does not solve the core problem for smallbusinesses!
    • Individual Health Insurance Marketplace AdvantagesThe Individual Health Insurance Marketplace (ACAshealth insurance exchange ["AHBE"] for individuals)will have the following key advantages for smallbusinesses:1. Choice - choice of co-pays, deductibles,coinsurance, networks within each metallic level2. Portability - health insurance policies areportable and not tied to employment (lose accessto insurance with group health)3. 1-Stop Shop / Convenience - all plans, options,and tax subsidies available in one experience4. Tax Credits/Administration - determines taxcredit eligibility/amount and facilitates advancedpayment
    • Tax Credits for Employees of Small BusinessesWho is eligible for premium tax subsidies?● Households with income between 100% and 400% of Federal Poverty Line(FPL)Where are the premium tax subsidies available?● ONLY available on individual health insurance market● ONLY available on exchangesIf businesses DO NOT offer qualified, affordable group health coverage theiremployees may qualify for federal subsidies
    • Household Income & Size are Key Variables for IndividualsTax credit calculator coming soon athttp://navigator.zanebenefits.comHousehold Size 100% of FPL 400% of FPL Premium Cap Range1 $11,490 $45,960 $0 - $363.85 / mo2 $15,510 $62,040 $0 - $491.15 / mo3 $19,530 $78,120 $0 - $618.45 / mo4 $23,550 $94,200 $0 - $745.75 / mo5 $27,570 $110,280 $0 - $873.05 / mo6 $31,590 $126,360 $0 - $1,000.35 / mo7 $35,610 $142,440 $0 - $1,127.65 / mo8 $39,630 $158,520 $0 - $1,254.95 / mo2013 FPL GuidelinesAverage Group SinglePremium in 2012 was:$468Average Group Familyof 4 Premium in 2012was:$1312
    • Understanding the Role of Defined Contributionand the Health Insurance Marketplaces
    • The Gift of Defined Contribution to EmployeesYour clients decision to NOT offer group healthinsurance is a gift to their employees because:1. All insurance is guaranteed issue in 20142. NO PENALTIES apply3. Employee tax subsidies are only available toemployees if your client does not offer group healthinsuranceBut what about recruiting/retention?But what about tax savings?But what about moral obligation?Defined Contribution is the Solution for Every Small Business
    • Advantages of Defined Contribution for Small Businesses○ Recruiting and Retention -■ Employee classes■ Turn your clients health benefit plan into arecruiting tool○ Cost Savings -■ Your client defines maximum budget■ No prefunding■ Client only spends what employeesactually use○ Ease of Use / Payroll Integration -■ Health benefits becomes a payroll function■ Your client focuses on their businesses, notthe business of health insurance○ Compliance -■ ERISA, IRS, HIPAA, ACA
    • Health Insurance Marketplaces and Defined ContributionHow does "pure" defined contribution work in 2014?Step 1: Small business offers employees a tax-free monthly allowance. Employeesvisit with the assigned health insurance professional.Step 2: Employee completes 1 of 2 applications:i. Application for Insurance with Tax Credit (12-pages).ii. Application for Insurance without Tax Credit (3-pages).Step 3: Health insurance professional/marketplace provides all available plan optionswithin metallic tiers (displayed cost will factor in tax credit).Step 4: Employee selects plan.Step 5: Individual health insurance marketplace bills individual for his or her portion ofpremium (i.e. the total premium minus tax credit) and forwards payment to the carrierStep 6: Employee provides proof of payment and is reimbursed tax-free for non-subsidized portion of marketplace premium by defined contribution plan
    • How to Retain Small Business Clientswith Defined Contribution
    • Present All Options to the Small Business● Group health insurance brokers- if you dont tell your client...acompeting broker will○ Most small business ownersonly know the status quo -this is changing rapidly● Individual health insurancebrokers - massive boost to yourcore business○ Opportunity to work withbusinesses (mass volume) ifyou arent already● Private health insuranceexchanges / quoting toolsCustomizedby InsuranceProfessional
    • The Health Reform Opportunity for Insurance Professionals● Be the solution expert for small businesses○ Defined contribution for the employer, ongoing health insurancesales for employees● Guaranteed issue health insurance...seriously○ Write policies in mass volume● 3-12 page health insurance application○ No health questions○ Quicker completion○ More policies● Broker commissions paid directly from carrier in many states○ New York, Washington
    • Summary / Conclusion
    • The Opportunity is Now...and the Solution is Already Here1. Your Clients Will Cancel their grouphealth insurance2. Defined contribution accomplishes yourclients goals without the cost or hassle ofgroup health insurance3. Small businesses should select aninsurance professional to helpemployees4. Your clients can focus on their business
    • Webinar Summary - Q&A1. Small Businesses are Canceling Group Health Coverage Now2. Health Reform Provides Incentive for Small Businesses to Drop GroupHealth Insurance in 20143. Dropping Group Health Insurance is a Gift to Employees4. Insurance Professionals are Primed to Take Advantage of the Opportunity5. The Opportunity to Increase Health Insurance Sales is Now
    • Zane Benefits is the online alternative to group health insuranceThe ZaneHRA Software provides a 100% paperless administration experience to employers and insuranceprofessionals that want to offer better health benefits without a traditional group health insurance plan at lower costs.For more information about ZaneHRA, check out our Software.Employers use ZaneHRA to open and manage their own stand-alone HRA or defined contribution health plancompletely online, electronically enroll participants and print welcome kits, and monitor expenses andreimbursements in real-time.Employees obtain their own individual health policies from a designated health insurance broker (see below),submit premium and medical expenses online, via fax, or mail, and receive same-day reimbursement via check,payroll addition, or direct deposit. Zane Benefits does not sell health insurance.Insurance Professionals partner with Zane Benefits and use ZaneHRA to provide clients with a cost-savinghealth benefits option. Insurance brokers earn compensation on ZaneHRA referrals and retain 100% of the healthinsurance compensation from carriers. ZaneHRA is distributed by leading health insurance carriers, agencies,brokers, and accountants.DISCLAIMERThe information provided herein by Zane Benefits is general in nature and should not be relied on forcommercial decisions without conducting independent review and analysis and discussingalternatives with legal, accounting, and insurance advisors. Furthermore, health insurance regulationsdiffer in each state; information provided does not apply to any specific U.S. state except wherenoted. See a licensed agent for detailed information on your state. www.ZaneBenefits.comFor additional resources onHealth Care Reform, visitwww.zanebenefits.com/blog