The Online Alternative to Group Health Insurance

The Online Alternative to Group Health InsuranceHelping employers offer great health benefits without the cost or complication of a group health plan

The ZaneHRA Software provides a 100% paperless administration experience to employers and insurance professionals 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 plan completely online, electronically enroll participants and print welcome kits, and monitor expenses and reimbursements 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-saving health benefits option. Insurance brokers earn compensation on ZaneHRA referrals and retain 100% of the health insurance 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 for commercial decisions without 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. state except where noted. See a licensed agent for detailed information on your state. www.ZaneBenefits.com

For additional resources on Health Care Reform, visit

www.zanebenefits.com/blog

Agenda

1. Zane Benefits Overview

2. The Problem The Online Alternative Solves

3. What is The Online Alternative to Group Health Insurance?

4. How Does The Online Alternative Work?

5. Why The Online Alternative to Group Health Insurance Matters:○ For Businesses○ For Individuals○ For Insurance Professionals

6. Summary

Who is Zane Benefits?

UnitedHealth is encouraging 100s of its independent agents to take an online course offered by Zane Benefits to learn how to market individual plans at companies

Even if Berneche carries out his plan to nearly double the size of his company, he still expects to save at least $360,000 this year with the new [Zane Benefits] program

Zane Benefits works with companies to help them give employees a tax-free allowance to purchase individual policies

Zane Benefits' Founder Paul Zane Pilzer writes that employer sponsored group health insurance will be “mostly eliminated” in the next 20 years.

Zane Benefits' Paul Zane Pilzer speaks on HRAs, Individual Health Policies, and Defined Contribution Health Benefits

Forbes.com on "Getting Better Health Insurance" featuring Zane Benefits' Founder Paul Zane Pilzer

● Founded in 2006● Clients in all 50 States● Distributed nationally by top Insurance Companies, Brokers, and

Payroll Companies since 2009

The Problem The Online Alternative Solves

Group Health Insurance Costs Too Much!

Remember, employers offer insurance for recruiting & retention because:

1. It is tax deductible to the business

2. Employees get the benefit 100% tax-free

3. Individual health insurance is not guaranteed-issue in most states (i.e. Moral Obligation)

The IDEAL Solution must address #1, #2, #3 AND must reduce or fix the employer's cost.

The Solution is Now

1. Cancel group health plan (if you have one)

2. Define a budget and create a defined contribution plan

3. Select an insurance professional to help employees

4. Focus on your business

What is The Online Alternative to Group Health Insurance?

The Online Alternative is "Pure Defined Contribution"

● ZaneHRA is "purest" form of Defined Contribution.

● HRA stands for “health reimbursement arrangement."

● It's an “arrangement” for tax-free medical expense reimbursement.

● ZaneHRAs function like business expense accounts.

HRAs are NOT health insurance

ZaneHRA Overview - Simple

1. Determines contributions

2. Sets eligibility

3. Picks start date

The Employees....

4. Enrolls employees

9. Reimburses employees for "expenses"

The Employer...

6. Purchase individual policies

7. Submit "expenses" for reimbursement

5. Sends welcome kits

Like Auto Insurance

ZaneHRA Claims Processing

8. Adjudicates employees "expenses"

Like Business Expense

Reimbursements

Why The Online Alternative to Group Health Insurance Matters

The Online Alternative for Businesses

○ Recruiting and Retention - key part of compensation■ Employee Classes■ Turn your health benefit plan into a recruiting

tool

○ Cost Savings■ Define your maximum budget■ No prefunding■ Only spend what employees actually use

○ Ease of Use / Payroll Integration■ Health benefits becomes a payroll function

○ Compliance■ ERISA, IRS, HIPAA, ACA

The Online Alternative for Businesses

Does your business employ < 50 FTEs?

...If Yes, Cancel your group health insurance plan

Does your business employ > 50 FTEs?

...If Yes, complete financial analysis

Why?

1. Guaranteed issue2. NO PENALTIES3. Employee tax subsidies

Compare cost of:

1. Qualified, affordable group health insurance

2. HRA + Penalties3. Penalties

The Online Alternative for Families

1. Choice - any plan, any carrier, any deductible, any coverage options

2. Portability - secure coverage regardless of employment status

3. Tax Savings - $1 tax-free is better than $1 in taxable wages

4. Subsidies - massive subsidies for individual health insurance in 2014

The Online Alternative for Families

Income Actual Family Cost Total Premium Gov’t Premium Subsidy

$20,000 $0 (Medicaid) Medicaid Medicaid$40,000 $1,982 (5%) $12,130 $10,148

$80,000 $7,600 (9.5%) $12,130 $4,530

● Who is eligible for premium tax subsidies?○ Households with income between 100% and 400% of Federal Poverty

Line (FPL)

● Where are the premiums tax subsidies available?○ ONLY available on individual health insurance market○ ONLY available on exchanges

If businesses DO NOT offer qualified, affordable group health coverage their employees may qualify for federal subsidies

FAMILY OF 4 Examples:

The Online Alternative for Insurance Professionals

1. Redefine an Industry - no incentive for < 50 businesses to offer group health

○ Individual policy sales in 2013○ Individual policy sales in 2014

with guaranteed issue and subsidies

2. The health reform solution - be part of the solution

3. Insurance service integration -

○ Online○ "Meet and Greet"

Customized by Insurance Professional

The Online Alternative for Insurance Professionals

Health Insurance Professionals = Navigators

● Relationship with employer and employees○ Broker of choice contracts with employer to service

all health insurance needs for employees

● Exchange plan options and subsidies ○ Offering of dedicated insurance services (online and

in person)

● Brokers help employees choose vs sell○ Like investment advisor helps employee choose best

401(k) investments

Summary / Conclusion

The Solution is Now

1. Cancel group health plan (if you have one)

2. Define a budget and create a defined contribution plan

3. Select an insurance professional to help employees

4. Focus on your business

Webinar Summary - Q&A

1. Businesses Cannot Afford Group Health Insurance

2. There is No Incentive for < 50 Businesses to Offer Group Health Insurance in 2014

3. The Online Alternative to Group Health Insurance is Defined Contribution

4. The Online Alternative Allows a Business to Focus on its Business

5. Individual Health Insurance Subsidies will Benefit Businesses, Families, and Insurance Professionals

The ZaneHRA Software provides a 100% paperless administration experience to employers and insurance professionals 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 plan completely online, electronically enroll participants and print welcome kits, and monitor expenses and reimbursements 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-saving health benefits option. Insurance brokers earn compensation on ZaneHRA referrals and retain 100% of the health insurance 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 for commercial decisions without 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. state except where noted. See a licensed agent for detailed information on your state. www.ZaneBenefits.com

For additional resources on Health Care Reform, visit

www.zanebenefits.com/blog