The Inevitable End of Small Business Health InsuranceWEBINARS

By 2025, “Less than 20%” of workers will receive employer-sponsored health insurance.

-Ezekiel Emanuel

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

Group health insurance is broken. We have the solution.

Zane Benefits offers simple, affordable, and compliant health benefit solutions to small and medium-sized businesses.

The ZaneHealth software helps businesses save 20% to 60% on healthcare costs by reimbursing employees for individual health insurance.

Our online solutions allow businesses to create compliant healthcare reimbursement plans that create happier employees, reduce costs, and save time.

Zane Benefits' Partner Program is an opportunity for insurance professionals to provide clients with custom Zane Benefits solutions. Request a Partner Evaluation.

Additional FREE Resources: Small Business Health Insurance & Defined Contribution

View all of our free eBooks, Whitepapers and On-Demand Webinars at: ZaneBenefits.com/Resources

Subscribe to our Blog at:ZaneBenefits.com/Blog

Agenda

1. Quick History of U.S. Employer-Provided Health Insurance

2. Individual Market Reform (aka Affordable Care Act)

3. The MASSIVE Shift to Individual Health Insurance

4. Summary and Q&A

Speaker: Rick Lindquist, President of Zane Benefits @RickLindquist

Quick History of U.S. Employer-Provided Health Insurance

Quick History of U.S. Employer-Provided Health Insurance

1940s - Creation of Employer-based Health Insurance● 2-for-1 tax advantage created● Worked fine until costs began to rise & employees switched jobs

1980s / 1990s - Small Group Reform (“NAIC Act”)● Guaranteed-issue Small Group Health Insurance● Created minimum contribution / participation requirements● Did not address cost

2000s - Rise of the Individual Market● eHealthInsurance.com● ExtendHealth, Inc. ● UnitedHealthOne ● Zane Benefits, Inc.

Individual Market Reform (aka Affordable Care Act)

Individual Market Reform (aka Affordable Care Act)

2010 - The Affordable Care Act (ACA) Signed Into Law

2014 - Major ACA Provisions Take Effect

Three Core Objectives for Individual Market:

1. To standardize plans and provide consumer protections

2. To provide universal access to health insurance

3. To make health insurance more affordable

1. To Standardize Plans and Provide Consumer Protections

● Standard Plan Tiers

● Unlimited Essential Health Benefits (EHB)

2. To Provide Universal Access to Health Insurance

● Guaranteed-Issue

● Health Insurance Marketplaces

3. To Make Health Insurance More Affordable

● Premium Tax Credits

● Medicaid Expansion

● Individual Mandate

These Enhancements Make Individual Market MORE Attractive

“The Individual Market is expected to expand to more than 150 million insureds by 2025.”

The MASSIVE Shift to Individual Health Insurance

The MASSIVE Shift to Individual Health Insurance

4 Reasons:

1. Employer health insurance costs are UNSUSTAINABLE

2. Individual health insurance is BETTER

3. Individual health insurance COSTS LESS

4. Defined Contribution allows employers to REIMBURSE

“60% of Small Businesses Will Transition to Individual Health Insurance by 2017”

1. Employer Health Insurance Costs are UNSUSTAINABLE

By 2013, only 57% of small- and medium-sized employers (< 200 employees) offered health insurance….

Compared with 99% of large employers (200+ employees).

2. Individual Health Insurance is BETTER

Individual health insurance policies provide greater value to employees:

● Choice

● Portability

3. Individual Health Insurance Costs LESS

Individual health insurance costs are 20% to 60% lower

3. Individual Health Insurance Costs LESS (continued)

3. Individual Health Insurance Costs LESS (continued)

4. Defined Contribution Allows Employers to REIMBURSE

Two primary options:

● Taxable Healthcare Allowance, or

● Tax-free Health Reimbursement Plan (HRP)*

Defined Contribution arrangements allow employers to reimburse employees for individual health insurance costs.

* Must be designed to comply with Market Reforms

Summary and Q&A

Summary

1. Employer-provided health insurance is not sustainable.

2. Affordable Care Act (ACA) is really Individual Health Insurance Reform.

3. Individual health insurance is now better for employees due to choice, portability, and cost.

4. Defined Contribution allows employers to reimburse employees for individual health insurance costs.

5. Over next three years, 60% of small businesses will transition to employer-funded individual health insurance.

Additional FREE Resources: Small Business Health Insurance & Defined Contribution

View all of our free eBooks, Whitepapers and On-Demand Webinars at: ZaneBenefits.com/Resources

Subscribe to our Blog at:ZaneBenefits.com/Blog

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

Group health insurance is broken. We have the solution.

Zane Benefits offers simple, affordable, and compliant health benefit solutions to small businesses.

The ZaneHealth software helps businesses save 20% to 60% on healthcare costs by reimbursing employees for individual health insurance.

Our online solutions allow businesses to create compliant healthcare reimbursement plans that create happier employees, reduce costs, and save time.

Zane Benefits' Partner Program is an opportunity for insurance professionals to provide clients with custom Zane Benefits solutions. Request a Partner Evaluation.