Park City, Utah (PRWEB) February 27, 2013
Today, Zane Benefits, Inc. published new information on the medical insurance premium tax credit. 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, starting in 2014, individuals and families can take a new medical premium tax credit to help them afford health insurance coverage purchased through a state-based Health Insurance Marketplace. On May 18, 2012, the Treasury Department and the IRS issued final regulations which provide guidance for individuals who enroll in qualified health plans through Exchanges and claim the premium tax credit, and for Exchanges that make qualified health plans available to individuals and employers.
What are the eligibility requirements?
- Household income must be between 100% and 400% of the federal poverty level (FPL).
- Covered individuals must be enrolled in a “qualified health plan” through a Health Insurance Marketplace.
- Covered individuals must be legally present in the United States and not incarcerated.
- Covered individuals must not be eligible for other qualifying coverage, such as Medicare, Medicaid, or affordable employer-sponsored insurance.
How much is the tax credit?
According to Zane Benefits’ website, the credit amount is generally equal to the difference between the premium for the benchmark plan and the taxpayer’s expected contribution.
The expected contribution is a specified percentage of the taxpayer’s household income. The percentage increases as income increases, from 2% of income for families at 100% of the FPL to 9.5% of income for families at 400% of FPL. The benchmark plan is the second-lowest-cost plan that would cover the family at the “silver” level of coverage.
Are there any special rules?
According to Zane Benefits’ website, yes. The credit is advanceable (i.e. advance payments are made directly to the insurance company on the family’s behalf). The advance payments are then reconciled against the amount of the family’s actual premium tax credit, as calculated on the family’s federal income tax return.
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 health care. 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.