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Zane Benefits Publishes New Information on HRAs and Health Insurance
Date:7/30/2013

Park City, Utah (PRWEB) July 30, 2013

Today, Zane Benefits, the online alternative to group health insurance, published new information on HRAs and health insurance.

According to Zane Benefits’ website, a Health Reimbursement Arrangement (HRA) is not health insurance. Rather, it is an employer-sponsored healthcare and premium reimbursement program. Many businesses offer a stand-alone HRA benefit as an alternative to offering traditional health insurance. The business allows employees to purchase a health insurance policy that fits their needs, and reimburses employees for eligible medical expenses tax-free up to the amount of their HRA allowance. This type of HRA benefit is also referred to as a defined contribution health benefit model.

An HRA is a Section 105 ERISA self-funded health plan. HRAs are an IRS-approved way for employers to reimburse employees for individual health insurance policies and eligible medical expenses. Using an HRA is one of the only ways a business can pay for employees' individual health insurance plans in a compliant way.

Many small and medium businesses cannot offer health insurance coverage due to rising costs and minimum contribution and participation requirements.

In 2014, individual policies become guaranteed issue, and eliminate the non-economic (i.e. moral) factors from an employer’s decision-making process.

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