Zane Benefits Publishes New Information on Health Reimbursement Arrangements and Healthcare Reform Laws

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HRAs Can Still Reimburse for Health Insurance Premiums

Today, Zane Benefits, Inc. published new information on Health Reimbursement Arrangements (HRAs) Under New Healthcare Reform Laws. 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 Benefit’s website, a recent set of FAQs published on the Department of Labor website has created enormous confusion regarding Health Reimbursement Accounts. Despite the confusion, Health Reimbursement Accounts can still reimburse premiums.

What is a Health Reimbursement Account?

According to Zane Benefits’ website, a Health Reimbursement Account, which is another term for Health Reimbursement Arrangement, or HRA, is a type of self-insured medical expense reimbursement plan that allows employers to set aside funds to reimburse employees tax-free for qualified out-of-pocket medical care expenses.

Can a Health Reimbursement Account Still Reimburse Individual Health Insurance Premiums?

According to Zane Benefits’ website, yes. The recently issued DOL FAQs did not do away with reimbursing premiums from an HRA. Nothing in PHS Act Section 2711 (or the Affordable Care Act) removes individual health insurance premiums (whether purchased inside or outside an exchange) from being tax deductible within the definition of "medical care" via IRC Section 213(d).

So, according to Zane Benefits’ website, assuming an HRA can comply with the 2711 regulations (e.g. the 106(c)(2) exemption), an HRA (or any section 105 self-insured medical reimbursement plan) can still reimburse the non-subsidized portion of individual health insurance premiums (and the reimbursement can be excluded from income as allowed by IRC Section 105(b) via IRC Section 213(d)).

What Does Non-Subsidized Mean?

According to Zane Benefits’ website, non-subsidized refers to the portion of an individual health insurance premium that is not subsidized by the federal government via a tax credit.

For example, an individual’s premium is $10,000 per year. The government subsidizes $8,000 via a tax credit. The individual pays the remaining $2,000 out-of-pocket. The $2,000 is the non-subsidized portion of the premium.

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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

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Christina Merhar
Zane Benefits
800-391-9209 6725
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