Park City, Utah (PRWEB) December 22, 2013
Today, Zane Benefits, the number one online small business health benefits solution, published new information on health insurance tax credits.
According to Zane Benefits’ website, as of 2014, the federal government is providing discounts for health insurance to eligible individuals and families. The discounts, called “health insurance tax credits”, help many employees buy more affordable individual or family health insurance coverage through the new state health insurance exchanges. The health insurance tax credits are "advanced-payable" meaning they are applied when an employee purchases health insurance coverage.
Employees who meet certain income requirements and who do not have access to affordable health insurance through an employer or another government program are eligible for a discount.
The tax credits are available to households with income up to 400% of the federal poverty line. This translates to up to $45,960 for an individual in 2013, or $94,200 for a family of four.
The tax credits act as a cap on how much the employee pays for health insurance. The health insurance tax credit cap health insurance costs at between 2% -9.5% of income, based on income.
The health insurance tax credits are only be available when purchasing individual or family health insurance through a state’s health insurance exchange. This can be done online or through a health insurance broker. Each state will have a website to view and compare policies, enroll in a plan, and receive the discount.
An employer can provide both a valued employee health benefit, and allow eligibility for the health insurance subsidies, by:
- Not offering a group health insurance plan
- Offering a "pure" defined contribution health plan. With a defined contribution health plan your employer gives you a healthcare allowance you can use on health insurance. An employee enrolls in health insurance through your state’s marketplace, and receive a discount via a health insurance subsidy. They receive tax-free reimbursement from your employer for your health insurance
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.