Zane Benefits Publishes New Information on HRAs for One Person

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Despite recent regulations, stand-alone HRAs are still a go for one-person plan

Today, Zane Benefits, the number one online small business health benefits solution, published new information on HRAs for one person.

According to Zane Benefits’ website, for over a decade, Health Reimbursement Arrangements (HRAs) have been widely used by small business owners and one-person non-profits as a way to increase their tax savings and to receive tax-free health benefits. However, recent regulatory changes around the use of stand-alone HRAs put a halt to most businesses and organizations using a stand-alone HRA (for plan years starting January 1, 2014).

The good news is that stand-alone HRAs are still allowed under the ACA for one-person HRA plans. In other words, if your small business or non-profit stand-alone HRA only has one participant, you can continue to offer the stand-alone HRA in 2014 and beyond.

One of the most common groups using a one-person stand-alone HRA are C-Corporation owners. C-Corp owners often set up an HRA for themselves to allow their business to reimburse them tax-free for personal health insurance, and write off the HRA reimbursements as a tax-deductible business expense. C-Corp owners may use the HRA to reimburse his or her medical expenses, as well as family medical expenses. A stand-alone HRA is an excellent option for tax-free business-owner health insurance.

Another group who commonly uses a stand-alone HRA in this way are one-person nonprofits and churches. For example, the organization will set up a stand-alone HRA to provide a health benefit to the Executive Director or Pastor. This is an excellent option for offering tax-free reimbursement of health insurance and medical expenses, and a way to provide key staff a health benefit without group health insurance -- which is often cost-prohibitive for the organization.

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About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHealth") for defined contribution health care. The flagship software provides a 100% paperless administration experience to small businesses and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about Zane Benefits, visit

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Christina Merhar
Zane Benefits
800-391-9209 Ext: 6725
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