(PRWEB) December 14, 2012
Zane Benefits, the leader in Defined Contribution and Health Reimbursement Arrangement (HRA) solutions for business health benefits, today published a quick guide to premiums that are reimbursable under a Section 125 Premium Only Plan (POP).
A Section 125 Premium-Only-Plan (POP) is a cafeteria plan that allows employees to pay their health insurance premiums with tax-free dollars. Since 2009, employees have been able to use POP plans to pay individual health insurance premiums with tax-free dollars.
Using Section 125 POP to pay for insurance premiums benefits both employers and their employees. Several states actually require Section 125 plans for certain employers, and other states have enacted specific regulations without requirements. Be sure to check your state’s regulations.
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The following individual health insurance premiums are eligible for reimbursement under a Section 125 Premium Only Plan:
(1) Major medical individual health insurance premiums
(2) Limited benefit individual health insurance premiums
(3) Dental care and Vision care premiums
(4) Qualified Ancillary premiums (e.g. accident policies)
(5) Medicare Part A or B, Medicare HMO, and employer-sponsored health insurance premiums
(6) Medicare Advantage and Supplement premiums
(7) COBRA premiums
*Note: Long Term Care Premiums are not reimbursable by a Section 125 POP plan.
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More About Section 125:
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About Zane Benefits, Inc.
Zane Benefits, Inc, a software company, helps insurance brokers, accountants, and employers take advantage of new defined contribution health benefits and private exchanges via its proprietary SaaS online health benefits software. Zane Benefits does not sell insurance. Using Zane’s platform, insurance professionals and accountants offer their clients a defined contribution plan with multiple individual health insurance options via a private health exchange of their choice.