Park City, Utah (PRWEB) February 15, 2013
Today, Zane Benefits, Inc. published new information on How Consumers can Purchase Tax-Free Individual Health Insurance. Zane Benefits, which provides comprehensive and flexible alternatives to traditional employer sponsored health benefits, is the leader in defined contribution and health reimbursement arrangements.
According to Zane Benefits’ website, most Americans have historically purchase health insurance from their employers because employer-sponsored health insurance costs (and distributions) can usually be excluded from employees’ income for purposes of calculating income and payroll taxes. This results in significant tax savings and benefits for many employees and employers. However with healthcare reform, more consumers will be purchasing individual health insurance.
The History of Tax-Free Group Health Insurance
According to Zane Benefits’ website, the concept of tax free health insurance began in the U.S. in the 1940s. During World War II, the government ruled that company-provided fringe benefits (e.g. health insurance) could be excluded from wartime wage controls. Unable to increase wages due to the wartime controls, many companies decided to increase health insurance benefits as a way to compete for top employees.
Group Health Insurance vs Individual Health Insurance
According to Zane Benefits’ website, individual health insurance plans are health insurance plans purchased by individuals to cover themselves or their families. Anyone can apply for individual health insurance.
Group health insurance plans are a form of employer-sponsored health coverage. Costs are typically shared between the employer and the employee, and coverage may also be extended to dependents.
The Growth of Individual Health Insurance
According to Zane Benefits’ website, the number of people buying individual health policies is growing rapidly. Once a person obtains an individual health policy, they can renew it until age 65 regardless of employment and their premium cannot be increased solely due to their own large claim (e.g. $1 million). Premiums increase each year with general medical inflation, but cannot be increased due to individual claims history.
And, in 2014:
1. Most individuals and families will receive a massive subsidy from the federal government to buy individual health insurance through an exchange, and
2. Insurance companies will no longer be able to decline individuals for individual health insurance based on a pre-existing medical condition.
According to Zane Benefits’ website, many small businesses are expected to terminate group health insurance (in favor of individual health insurance) in 2014.
About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHRA") for Health Reimbursement Arrangements (HRAs) and defined contribution healthcare. The flagship software provides a 100% paperless administration experience to employers and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about ZaneHRA, visit http://www.zanebenefits.com.