A Guide to Lovable Employee Health Benefits For businesses to thrive in today’s economy, finding and retaining the best employees is top priority. However, the landscape of small business health insurance is changing and the cost of group health insurance is no longer sustainable. Businesses need new ways to offer the same or better health benefits at a controllable cost. Because of this, businesses are transitioning to defined contribution health benefits. Small Business Owners, CEOs, and Human Resources Managers should download this guide to learn how defined contribution health benefits reduce the cost and time associated with traditional health insurance, while maintaining all of the benefits employees love. •How to design affordable health benefits that employees love •The top 3 reason businesses are transitioning to defined contribution •How defined contribution compares to group health insurance •Strategic ways to free up more time for meaningful work Bill Peterson/Owner Health Benefit Solutions Since 1993 Zane Benefits Consultant Contact: Local:704-847-3314 Toll Free: 1-888-881-9272 E-Mail: billpeterson36@gmail.com Website: www.lowestcosthealthplans.com

1. A Guide to
LOVABLE EMPLOYEE
HEALTH BENEFITS
Create Affordable
Health Benefits
Employees Will Love

2. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 2
The #1 Online Small Business Health Benefits Solution
Successfully transition to a health benefits solution that creates happier employees, reduces
costs, and frees up time for meaningful work. Request a Demo.
Health Benefit Solutions Since 1993 Matthews N.C. A Zane Benefits Consultant for
the Carolinas
Bill Peterson/Owner Local: 704-847-3314 Toll Free: 1-888-881-9272
E-Mail Me: billpeterson36@gmail.com Website: www.lowestcosthealthplans.com
DISCLAIMER
The 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.
Happier
Employees
With Zane’s solution,
employees choose the
health plan that best
fits their families'
needs. Learn more.
Controllable Costs
Employers fix their
costs by utilizing a
defined contribution
approach.
Learn more.
More Time for
Meaningful Work
Once implemented,
Zane’s solution takes
less than 5 minutes
per month to
administer online.
Learn more.
Easy Transition
Zane Benefits’
implementation team
will ensure a smooth
and fast transition for
you and your
employees.
Learn more.

3. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 3
A GUIDE TO LOVABLE
EMPLOYEE HEALTH BENEFITS
Create affordable health benefits employees will love
Introduction
For businesses to thrive in today’s economy, finding and retaining the best employees is top priority.
This is especially true for small businesses competing with larger businesses, and larger budgets, for
top talent. Additionally, the landscape of employee health insurance is rapidly changing. Businesses
need new ways to offer the same (or better) health benefits at a controllable cost.
Happy Employees Help Your Business Thrive
Frequent voluntary turnover has a negative impact on employee morale, productivity, and company
performance. Recruiting and training a new employee requires staff time and money. Every time a
business replaces a salaried employee, it costs 6 to 9 months’ salary on average. For a manager
making $40,000 a year, that's $20,000 to $30,000 in recruiting and training expenses.
On the flip-side, retaining employees who are committed, loyal, and embody the business’s mission
are what gives your business its competitive edge.
While some turnover is inevitable, a strategic employee recruiting and retention strategy mitigates the
turnover and associated costs for a small business. Employee health benefits are a key part of the
compensation offered to employees, and therefore vital to employee recruitment and retention
programs.
The New Way of Offering Health Insurance
Businesses are transitioning to defined contribution health benefits because it offers predictable costs
to the business, while providing employees access to quality health insurance.
Defined contribution health benefits reduce the cost and time associated with traditional health
insurance, while maintaining all of the benefits employees love.

4. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 4
About this Guide
Offering health benefits through a defined contribution
approach allows your business to provide health benefits
that employees love, while staying within your business’s
health insurance budget.
Small and medium-sized businesses are transitioning to
defined contribution health benefits because of:
1) Controllable costs / pg. 5
2) Happier employees / pg. 7
3) Painless administration / pg. 9
This guide provides an overview of these three benefits.
Contact: Health Benefit Solutions Since 1993 Matthews
N.C. 28105 A Zane Benefits Consultant
Bill Peterson/Owner Local: 704-847-3314 Toll Free: 1-
888-881-9272 Fax: 1-888-881-9884
E-Mail Me: billpeterson36@gmail.com Website:
www.lowestcosthealthplans.com

5. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 5
1) Controllable Costs
Being able to set, control, and predict all health benefits costs is revolutionary for many businesses.
Defined contribution health plans give your business
controllable costs by offering the following features:
 Define your budget by setting any contribution
amount to employees’ health care.
 Give employees tax-free monthly health care
allowances (via an IRS-approved Medical
Reimbursement Plan).
 Employees purchase individual health insurance
policies (or incur an eligible medical expenses) and
submit expenses for reimbursement. The business
reimburses employees on payroll tax-free.
 The business only reimburses employees for eligible
premiums and expenses, up to the amount of their
health care allowance.
 At the end of the year, the business decides what
happens to employees’ unused allowances (i.e. do
they carry-over to the next year).
Without annual renewal increases or minimum contribution
amounts, the business is free to control all benefit costs.
Compared to
Group Health Insurance
…
Average Employer Cost For
One Year of Group Health
Insurance*
Single Employee:
$5,615
Up 255% since 1999
Family:
$15,745
Up 272% since 1999
*Source: Kaiser Family Foundation, 2012
In the past, group health
insurance was the best way to
provide quality health
insurance to employees.
Today, group health insurance
is a source of frustration to
declining benefits and
increased costs.
Businesses need the same
quality of coverage, but with
controllable cost and
sustainable administrative
effort.

6. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 6
How Defined Contribution Health Benefits Work
It’s a simple and effective approach,
But a significant change in how companies offer health insurance…
Set any amount to
contribute to
employee's health
care
Give employees
tax-free health
care allowances
via an HRA
Reimburse
employees on
payroll for
approved
premiums and
expenses
Business liability
is controllable &
Employees shop
for policies that
BEST meet their
needs

7. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 7
“61% of employees
report that being able
to customize benefits
would increase their
loyalty.”
~ MetLife 2013 Study of EmployeeBenefit
Trends benefittrends.metlife.com
2) Happier Employees
In order for a health benefits program to work, it has to
meet the business’s budget and provide value to
employees. The following aspects of defined
contribution health benefits contribute to happier
employees.
Access to the Best Health Care
Because employees choose how to spend their health
care allowance, including which individual health insurance policy to purchase, they can pick the
health coverage that best meets their needs.
Employees say they no longer want a one-size fits all health
insurance plan. Rather, they want the options to customize
their health benefits.
With defined contribution plans, employees select:
 Any type of plan, from any insurance carrier.
 The network of providers and doctors they want to see.
Coverage to fit their health needs (maternity coverage,
prescription, HSA-plan, etc.).
 The level of deductible, co-pays, co-insurance, etc.
Tip: Because some employees may not be comfortable selecting an individual health insurance policy
on their own, you may want to designate an insurance professional to help employees select
individual policies. This also shows employees you care about them and want to improve their health
benefits.

8. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 8
Coverage for All Employees
Starting October 1, 2013 all employees (regardless of health conditions) will be able to purchase an
individual health insurance plan (effective January 1st
, 2014) that is equal or better for them than
existing group health insurance options.
Access to Health Insurance Subsidies
Starting in October 2013, employees can use their health care allowance to purchase policies from
the new health insurance marketplaces. This gives them access to federal health insurance tax
subsidies (starting in 2014) to lower the cost of their premium. Eligibility for the tax subsidies is based
on income and household size. Households with income up to 400% above the federal poverty line
(FPL) will be eligible (up to $45,960 for an individual in 2013, or $94,200 for a family of four in 2013).
Tip: Employees will only be eligible for the tax subsidies if the business chooses not offer group
health insurance. Read more on the individual health insurance subsidies here.
Predictable Costs for Employees
Employees have a clear budget to spend on health insurance. Individual plans are, on average, 30%
cheaper than the same group coverage. And if an employee doesn’t spend their full allowance on
health insurance, they could use it on co-pays, prescriptions, etc. (as the employer’s plan allows).
Easy to Use
Lastly, employees value health benefits that are easy to
understand, and easy to use. Similar to the transition
from pensions to 401(k) retirement plans, the defined
contribution health benefits approach requires employees
to take more control of their health benefits.
Defined contribution administration software provides
employees easy access through an online portal where
they can see benefit information and submit requests for
reimbursement (“claims”).

9. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 9
3) Painless Administration
Every small business owner or HR manager wants to spend
more time on strategic issues, and less time renewing health
insurance plans.
With defined contribution health benefits, administration
becomes a payroll function. Once set up, it takes 5-10
minutes a month.
Once the plan is set up, the business’s administrative
activities include:
 Adding approved reimbursements to payroll.
 Enrolling new employees online.
 Terminating employees from the plan when they leave
the company.
 Providing education to employees about the benefit.
 Connecting employees with an insurance agent for
insurance questions.
Tip: Defined contribution health benefits software is key to
managing these administrative aspects in a painless,
compliant, and efficient way.
* Source: Talent Management Magazine, “Make HR Happy.”
http://talentmgt.com/articles/view/make_hr_happy. July 12, 2013.
Most HR Managers
spend less than
10% of their time
at the strategic
level.
Rather, 50-65% is
spent processing
HR transactions.
Heavy
transactional
workloads make
recruiting and
retaining top
managerial talent
increasingly
difficult.*

10. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 10
Next Steps
For a business transitioning to defined contribution health benefits, or for a business using defined
contribution to offer health benefits for the first time, here are the next steps:
 Set a date to cancel your group health insurance plan (if you have one).
 Define any amount you can afford for health benefits.
 Use a Defined Contribution Software provider to:
o give each employee a fixed dollar amount to use on premiums and/or medical
expenses,
o develop a customized transition and on-boarding plan, and
o educate employees on their new plan.
 Select any insurance professional to give employees a resource in selecting the best plan.
Conclusion
We hope this guide has given your business the foundation for creating health benefits that
employees love.
Because of the unsustainable costs of group health insurance, and the new individual health
insurance opportunities with health care reform, educated businesses are transitioning to defined
contribution health benefits to give employees access to equal or better health insurance, at a
controllable cost, with less administrative time.
The Result?
EmployeesLove Their
Health Benefits Again!

11. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 11
ADDITIONAL HEALTH BENEFITS RESOURCES
View our full library of health benefits tools, on-demand webinars, and eBooks at:
www.zanebenefits.com/health-benefits-resources

12. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 12
The #1 Online Small Business Health Benefits Solution
Successfully transition to a health benefits solution that creates happier employees, reduces costs,
and frees up time for meaningful work. Request a Demo.
DISCLAIMER
The 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.
Contact: Health Benefit Solutions Since 1993 Matthews N.C. 28105 A Zane Benefits Consultant
Bill Peterson/Owner Local: 704-847-3314 Toll Free: 1-888-881-9272 Fax: 1-888-881-9884
E-Mail Me: billpeterson36@gmail.com Website: www.lowestcosthealthplans.com
Happier
Employees
With Zane’s solution,
employees choose the
health plan that best
fits their families'
needs. Learn more.
Controllable Costs
Employers fix their
costs by utilizing a
defined contribution
approach.
Learn more.
More Time for
Meaningful Work
Once implemented,
Zane’s solution takes
less than 5 minutes
per month to
administer online.
Learn more.
Easy Transition
Zane Benefits’
implementation team
will ensure a smooth
and fast transition for
you and your
employees.
Learn more.