Zane Benefits Publishes New Information on COBRA and Section 105 Plans

Today, Zane Benefits, the #1 Online Health Benefits Solution, published new information on COBRA and Section 105 Plans.

According to Zane Benefits’ website, Section 105 "Pure" Defined Contribution Health Plans are subject to COBRA requirements (for employers with over 20 employees). This means employers must allow employees and/or dependents to continue their coverage after termination -- if the employee pays the cost themselves.

According to Zane Benefits’ website, employers must give terminated employees the option to continue coverage in their Defined Contribution Health Plan for a period after termination, and may charge the terminated employee up to 102% of the cost of this coverage.

For most purposes, terminated participants who have elected COBRA coverage are treated exactly like current, similarly situated employees. The key difference between current and terminated employees is that the employer may charge the terminated participant and/or dependents for the cost of their coverage.

Click here to read the full article.


About Zane Benefits

Zane Benefits, the #1 Online Health Benefits Solution, was founded in 2006 to revolutionize the way employers provide employee health benefits in America. We empower employees to take control over their own healthcare, while helping employers recruit and retain the best talent. Our online solutions allow small and medium-sized businesses to successfully transition to a health benefits program that creates happier employees, reduces costs and frees up more time to serve their customers. For more information about ZaneHealth, visit