Park City, Utah (PRWEB) March 13, 2013
Today, Zane Benefits, Inc. published new information on Health Reimbursement Arrangements. 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, one of the most important considerations for employers as they prepare to transition to a defined contribution health plan is the design of the underlying Health Reimbursement Arrangement (HRA). Zane Benefits’ website offers a list of frequently asked questions (FAQs) on HRAs.
What is a Health Reimbursement Arrangement?
According to Zane Benefits’ website, a Health Reimbursement Arrangement is an IRS-approved, employer-funded, tax-advantaged plan that reimburses employees for out of pocket medical expenses, including individual health insurance premiums.
Health Reimbursement Arrangements (HRAs) are one of several programs authorized by the Internal Revenue Service (IRS) that give individuals tax advantages to offset health care costs. Other IRS programs include Health Savings Accounts (HSAs) and Flexible Spending Arrangements (FSAs).
What is the difference between a Health Reimbursement Arrangement and an HSA or FSA?
According to Zane Benefits’ website, HRAs, HSAs and FSAs are all IRS-approved plans where distributions are used to pay for qualified medical expenses on a pre-tax basis. However, there are some key differences:
- An HRA is a notional account funded solely by the employer. Employees may not contribute. Contributions are not included in employees' income. Employers pay only after their employees incur eligible medical expenses. An HRA is the only IRS-approved plan that allows an employer to reimburse for individual health insurance policies.
- An HSA is a financial account and can be funded by the employer and/or the employee, as well as any other person (such as a family member). Contributions, other than employer contributions, are deductible on the eligible individual’s tax return whether or not the individual itemizes deductions. Employer contributions are not included in income.
- An FSA can be funded by the employer and/or the employee, though usually it is funded primarily by the employee.
Why would an employer offer a Health Reimbursement Arrangement?
According to Zane Benefits’ website, an HRA allows companies to offer flexible benefits, providing an alternative for companies who cannot offer group health insurance due to high cost or participation requirements.
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.