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Zane Benefits Publishes New Information on Health Insurance Allowances
Date:10/27/2013

Park City, Utah (PRWEB) October 27, 2013

Today, Zane Benefits, the number one online small business health benefits solution, published new information on health insurance allowances.

According to Zane Benefits’ website, pure defined contribution health models are fast becoming popular with small businesses. With pure defined contribution a business contributes a fixed dollar amount toward employees' health insurance costs.

The defined contribution plan (and health insurance allowance) is not a health insurance plan. Rather, it's a compliant way to reimburse employees for individual health insurance premiums.

The most common approach to providing a health insurance allowance is to use a limited-purpose Section 105 medical reimbursement plan. With this type of plan, the business decides the amount of the health insurance allowances, who is covered and employee eligibility criteria. A Section 105 plan is one of the only compliant ways a business can provide reimbursement for personal health insurance policies.

For small businesses, recruiting and retaining quality employees is vital. Offering health benefits is an important part of the compensation offered to them, and it sets the business apart as an employer of choice.

Whether the business is hiring its first W2 employee, a formal health benefits package is needed to retain a key employee, or group health insurance costs exceed internal budgets, providing a health insurance allowance allows small businesses to offer formal health benefits.

According to Zane Benefits’ website, another reason many small businesses are using health insurance allowances is because of new opp
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