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Why do employers offer health insurance to workers?

  • To recruit and retain good workers and be competitive in the marketplace.
  • To offer fringe benefits to workers that was not added to their W-2 as compensation.

Why do employees want group health insurance offered by their employer?

  • Only group insurance was purchased with pre-tax dollars - those who purchased individual insurance did so with after-tax dollars (this has changed).
  • Historically because only group insurance waived pre-existing conditions (which adversely could impact the experience rating/costs for small employers if a worker became very ill.)  Healthcare reform is bringing about guarantee issue coverage to all Americans-leveling the playing field and allowing portability of insurance plans!

Small Business Health Insurance Facts

We can show your small business a way to save 50% on health benefits costs by using a Healthcare Reimbursement Account (HRA) with ZaneHRA. . .

-with no health insurance rate increases - ever!

-employees get to choose the health coverage they want and need - they don't have to go with a one-size-fits-all selection

-the business owner gets to save 50% on providing health benefits and still offer quality health insurance to employees!

Did you know that. . .

  • Employees can now contribute pre-tax dollars to pay for individual health insurance - similar to group plans.
  • Employers can contribute tax-free to those employees' health insurance costs.
  • Only 45% of all small employers offer health insurance to employees today.  That percentage is expected to decline with Healthcare Reform.
  • Healthcare reform mandates that only employers with over 50 workers purchase healthcare coverage.

How would a small business health insurance plan (with ZaneHRA) like this work?

  • Employers choose a monthly allowance amount.  Unspent allowances can accrue for future healthcare expenses or retirement.  Allowances can differ based on:
    • Full-time versus part-time status
    • Job description
    • Date of hire
    • Geographic location

  • Employees select individual insurance plan (which could include faSmall business health insurancemily coverage).

    • ZaneHRA sends your employees informative welcome kits about the HRA plan.
    • YourVirtualBenefits.com works with your employees to pick a personal insurance policy.
    • Policies are customized to suit your employees' needs and employees are able to keep their coverage - even if they lose their job.
  • Employer Reimburses Employee
    • Employee pays insurance premium directly to carrier
    • Employee submits claim to ZaneHRA through website, fax or mail.
    • ZaneHRA claim processor examines the claim within 2 business days, approves reimbursement and sends the employee and employer an email notification.
    • The employer then reimburses the the employee tax free - usually in their paycheck.

Small Business Health Insurance

Of course, if offering your employees an HRA and individual health plan option is not the route you would like to go - YourVirtualBenefits.com has other small group plans available - give us a call at 800-604-3035 today to discuss your needs!