SAN FRANCISCO--(BUSINESS WIRE)--Zenefits, the leading all-in-one Digital HR platform for small and medium businesses, today announced the full integration of level payment self-funded employee health plans into its comprehensive platform. As part of this roll out, Zenefits is partnering with Aetna, a market-leading provider of small group benefits solutions, as well as several other key carriers.
Level payment self-funded plans like Aetna Funding Advantage are another powerful example of how Zenefits Broker Services helps companies find the best possible plans for their specific needs. An attractive option for some companies, level payment self-funded plans enable employers to pay only for claims and the cost of administering them, as opposed to fixed-rate plans. For companies with a relatively healthy employee base, this can translate into significant cost savings, lowering annual healthcare costs by as much as 25 percent for some companies.
“Employee benefits represent a huge investment for any business and can create an important competitive advantage,” said Colin Rogers, vice president of carrier relations, Zenefits. “Quoting for level payment self-funded plans usually involves a slow, manual, paper-based process. In coordination with Aetna, Zenefits has developed a unique online and mobile workflow that streamlines the process and protects the confidentiality of employee personal health information.”
“The small business market needed a new solution – one that would contain costs, without introducing unnecessary risk and complexity. That’s why we developed Aetna Funding Advantage. It’s the perfect mix of innovation and trusted practices – and it’s really taken off. We’re excited to partner with Zenefits to help even more small businesses offer their employees’ health benefits at a cost they can afford,” said Brian Corbey, VP Small Group, Aetna.
Overcoming Small Businesses Disadvantage
According to the U.S. Department of Labor, employee benefits represent an average of 30 percent of total employee compensation costs, with health insurance accounting for approximately eight percent of total compensation.1
Small businesses lack the buying power of larger employers and often pay more for the same employee health benefits. On average, small businesses pay about 8 to 18 percent more than large firms for the same health insurance policy.2 Health coverage providers may charge different premiums to small employers based on the industry of the employer or on the employer’s prior health claims.
Level payment self-funded plans offer the benefits of self-funding, with financial protection to manage risk. Unlike traditional self-funded plans, level-payment plans are paid in predictable monthly payments and include stop-loss coverage to protect against potential increases. In years when medical costs are lower than anticipated, 50 percent of any surplus at the end of the year is credited back to the company.
First-of-its-Kind Mobile Workflow Saves Time, Protects Employee Information
Level payment self-funded plans require an employee health history census for quoting. To streamline the process, Zenefits allows employees to enter their health history online or on their mobile device. This not only saves time for company administrators, it also helps protect sensitive employee health information by sending information directly to the carrier, as opposed to administrators and other conventional channels.
The Aetna level payment self-funded plans are now available through Zenefits Broker Services, as an optional complement to its all-in-one Digital HR platform.
Zenefits is the leading all-in-one Digital HR platform for small and medium businesses. Designed as the single source of truth for managing the modern workforce, Zenefits delivers the most complete, all-mobile HR experience by tightly integrating its own powerful applications with dozens of best-of-breed providers on the Zenefits platform. Zenefits’ applications like HR, Benefits, Time, Payroll and Compliance combine with partner applications like email, collaboration, expense management, and employee engagement to create a powerful platform. Thousands of businesses use Zenefits to empower their employees, provide benefits, manage change and stay compliant.
1 - US Dept of Labor Employer
Costs for Employee Compensation, Dec. 2016
2 - National Conference of State Legislatures, Small and Large Business Health Insurance: State and Federal Roles, Updated 1/3/17