Park City, Utah (PRWEB) November 12, 2013
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.
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 http://www.zanebenefits.com.