Zane Benefits Publishes New Information on Defined Contribution and ObamaCare

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Health Reimbursement Arrangements Can Still Reimburse for Individual Health Insurance Premiums Under Healthcare Reform

Today, Zane Benefits, Inc. published new information on defined contribution and ObamaCare. 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, the Patient Protection and Affordable Care Act (PPACA) was signed into law on March 23, 2010 and various laws impact defined contribution health benefits, Health Reimbursement Arrangements (HRAs), employers, insurance professionals, CPAs, and employees.

Zane Benefits’ website provides a summarize of the most common questions we receive about health care reform.

Can HRAs Still Reimburse Health Insurance Premiums?

According to Zane Benefits’ website, yes. HRAs can still reimburse for individual health insurance premiums. The types of medical expenses that can be reimbursed through an HRA are governed by IRC Section 105(b), IRC Section 213(d) and IRS Publication 969. This includes reimbursement of individual health insurance premiums. Nothing in these codes or publications has changed.

However, according to Zane Benefits’ website, there has been confusion over stand-alone HRAs after 2014. On January 24th, 2013, the Department of Labor released a new set of FAQs clarifying which type of HRAs will be considered "integrated" HRAs (integrated with a group health plan). PHS Act Section 2711 does not affect an HRA's ability (under Section 105) to reimburse health insurance premiums.

Are HRAs Affected by PHS Act Section 2711?

According to Zane Benefits’ website, yes. To be compliant with PHS Act Section 2711, HRAs will need to fall into one of these five types of HRA plans to be exempt from the annual limit requirements:

1. "Integrated" HRAs
2. "Flexible Spending Arrangement" HRAs
3 "Excluded" HRAs
4. "Excepted" HRAs
5. "Retiree" HRAs

Most stand-alone HRAs will fall under a "Flexible Spending Arrangement" (#2), and only minor plan design changes will need to be made to qualify.

Which Companies are Subject to Penalties in 2014?

According to Zane Benefits’ website, It depends on how many full-time equivalent (FTE) employees the company has.

  • 50 FTE employees or more: The company will be subject to the employer penalty if they choose not to offer “qualified” and “affordable” health insurance to employees (starting in 2014).
  • Less than 50 FTE employees: The company is not be subject to the employer penalty.

Click here to read full article.

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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 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.

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Christina Merhar
Zane Benefits
800-391-9209 6725
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