GroupHRA Training for Zane Affiliates

Who Partners with Zane Benefits?

Existing partners include: ● Insurance Professionals● CPAs & Accountants● General Agencies● Insurance Companies● Payroll Providers

LEARN MORE: ZaneBenefits.com/Partners

● PEO and HR Outsourcing● Chambers of Commerce● Franchises and Associations● Website Affiliates● Other

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

FREE DEMO: ZaneBenefits.com/Request-a-Demo

Subscribe to Clarifying Health: www.zanebenefits.com/blog

Let’s Connect!

Zane Benefits Awareness

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 Cos since 2009

Small Business Health Insurance - Today

Less than 50% of small businesses offer group health:

● Cost is too high - 61%● Firm is too small - 13%● Turnover is too great - 6%● Other - 20%

3,000,000small businesses

without group health

Quick GroupHRA Overview

What is GroupHRA?

• is an HRA plan that supplements a group health insurance plan

• Saves employers up to 30% without reducing coverage

• Increases group health conversion and retention rates

GroupHRA...

What is an HRA?

● HRA stands for “health reimbursement arrangement”.

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

● HRAs function like business expense accounts.

● Unlike HSAs and FSAs, money made available through an HRA is owned by the employer until reimbursed!

Generic Example: 20 Employee Company

1) Increase employee exposure to save on premium

Current Policy$500 Deductible

Premium: $100,000/yr

New Policy$2,500 Deductible

Premium: $60,000/yr

GroupHRA$2,000 Allowance

Total Allowances: $40,000/yr

New Plan$500 Net Deductible

Actual cost depends on HRA usage40% savings

3) Savings is based on GroupHRA usage

2) Add GroupHRA to cover increased exposure

35% = $74,000/yr26% savings!

50% = $80,000/yr20% savings!

100% = $100,000/yrBreak-even

3 Common Approaches for GroupHRA

Approach #1: Mimic Current Plan - Overview

When mimicking the current group plan, we structure the HRA to kick-in after the “old” deductible is met.

This is the most popular approach.

Approach #1: Mimic Current Plan - Case Study

A 23 employee company in NY raised the deductible on its health plan from $750 to $2500 and used GroupHRA to cover the increased $1,750 exposure

Approach #1: Mimic Current Plan - Analysis

A 23 employee company in NY raised the deductible on its health insurance plan from $750 to $2500 and used GroupHRA to cover the increased $1,750 exposure

1. Old policy premium = $303,600 per year

2. New policy premium = $231,120 per year

3. The company required employees to pay $750 out of pocket and used GroupHRA to cover the next $1,750 (total HRA allowances = $40,250)

4. Annual HRA utilization = 25%

5. New Plan total cost = $241,183 (21% savings!)

Approach #2: First Dollar Coverage - Overview

When providing first dollar coverage, we structure the HRA to kick-in immediately without regard to the “old” deductible.

Approach #2: First Dollar Coverage - Case Study

A construction company in Michigan with 21 employees raised the deductible on its health plan from $0 to $1,000 and used GroupHRA to cover the employees’ initial out of pocket costs.

Approach #2: First Dollar Coverage - Analysis

A construction company in Michigan with 21 employees raised the deductible on its health insurance plan from $0 to $1,000 and used GroupHRA to cover the employees’ initial out of pocket costs.

1. Old policy premium = $349,956 per year

2. New policy premium = $293,904 per year

3. The company used GroupHRA to cover the first $500 of the deductible (total HRA allowance = $10,500)

4. Annual HRA utilization = 22%

5. New Plan total cost = $296,214 (15% savings!)

Approach #3: Mimic and First Dollar - Overview

When taking a “combo approach”, we structure the HRA to kick-in immediately and reimburse a % of employee expenses.

Approach #3: Mimic and First Dollar - Case Study

A 25 person manufacturing company raised the deductible on its health insurance plan from $2500 to $5000 and used GroupHRA to reimburse 50% of the $5000 deductible.

Approach #3: Mimic and First Dollar - Analysis

25 person manufacturing company raised the deductible on its health insurance plan from $2500 to $5000 and used GroupHRA to reimburse 50% of the $5000 deductible.

1. Old policy premium = $223,044 per year

2. New policy premium = $142,584 per year

3. The company used GroupHRA to cover the $5000 deductible at 50% (total HRA allowances = $62,500)

4. Annual HRA utilization = 20%

5. New Plan total cost = $155,084 (30% savings!)

GroupHRA Administration

Key Feature #1 - Paperless Setup

The setup process is 100% paperless and takes less than 20 minutes to complete.

1. Signup FormClient completes the 2-page signup form online.

2. HRA DesignZane Benefits walks the client through the HRA plan design wizard via webinar.

3. Online EnrollmentThe software automatically generates required documents, and employees "electronically sign" all of their documents with one click of a mouse.

Key Feature #2 - Flexible Plan Design

● Cover any portion of the deductible (e.g. front, middle or end)

● Restrict eligible expenses

● Reimburse different types of expenses at different rates

● Add dental and vision coverage

● Classes can be based on job categories, geographic location, part-time status, date of hire, etc.

And much, much more...

Key Feature #3 - Online Claims Submission

● Fast Processing: Once submitted, claims are processed within 2 business days (typically in 1-2 hours).

● HIPAA-Privacy: All claims are kept HIPAA-protected and stored with receipts for employee convenience.

● Real-time Notifications: Employees receive email notifications at every step of the claims process.

Mail and Fax forms are also available...

Key Feature #4 - Payroll Integration

● Clients use existing payroll service to make reimbursements

● Administration only takes a few minutes per month

● No separate checks and no pre-funding of balances Check and Direct-Deposit

options are also available...

FAQ - Do employees have to pay out-of-pocket?

No. An Explanation of Benefits (EOB) from the insurance company is an appropriate “proof of payment”.

ReimbursedEmployee receives reimbursement from the employer and pays the bill.

Get EOBEmployee visits doctor and receives an EOB from the insurance company.

Submit ClaimEmployee submits a claim for reimbursement online and attaches the EOB.

Approve ClaimZane Benefits approves the claim using the EOB as a receipt.

Simple Referral Process

Employer Referral and Sales Process

Register Leads at www.zanebenefits.com/refer

Introductory Call

PlanSetup

Demo

Proposal

● We will assist you with every step of the sales process

● Use us extensively for first 3 sales

Who Partners with Zane Benefits?

Existing partners include: ● Insurance Professionals● CPAs & Accountants● General Agencies● Insurance Companies● Payroll Providers

LEARN MORE: ZaneBenefits.com/Partners

● PEO and HR Outsourcing● Chambers of Commerce● Franchises and Associations● Website Affiliates● Other

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

FREE DEMO: ZaneBenefits.com/Request-a-Demo

Subscribe to Clarifying Health: www.zanebenefits.com/blog

Let’s Connect!