Zane Benefits Publishes New Information on HRA, HSA and FSA Accounts

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How Health Reform Impact Medical Reimbursement Programs Now and Into 2014

Today, Zane Benefits, Inc. published a new information on HRA, HSA and FSA accounts. Zane Benefits, which provides comprehensive and flexible alternatives to traditional employer sponsored health benefits, is the leader in defined contribution and http://HRA Link: health reimbursement arrangements.

According to Zane Benefits’ website, the Affordable Care Act (known as ACA or health reform) was signed into law in 2010 and impacts many areas of health care and health insurance, including medical reimbursement programs such as HRAs, HSAs and FSAs. Here's an overview of how health reform impacts HRA, HSA and FSA programs.

HRA, HSA, FSA Definitions

According to Zane Benefits’ website, HRA stands for Health Reimbursement Arrangement, HSA stands for Health Savings Account and FSA stands for Flexible Spending Account.

How Health Reform Impacts HRA, HSA, FSA Accounts

According to Zane Benefits’ website, there are a few key impacts of health reform on HRA, HSA and FSA accounts. Some of these changes have already occurred. Others will come into effect in 2014.

Beginning January 1, 2011, over-the-counter (OTC) medications became no longer eligible for reimbursement from a Flexible Spending Account (FSA), Health Savings Account (HSA), or Health Reimbursement Arrangement (HRA), unless obtained with a prescription (except for insulin).

Also on January 1, 2011, the excise tax for non-qualified HSA withdrawals doubled from 10% to 20%.

Beginning January 1, 2013, FSA employee salary reduction contributions were limited to $2,500 per plan year, with future increases to allow for inflation.

Beginning January 1, 2014, HRAs may need minor plan design changes to be ACA-compliant in 2014. HRAs will need to meet one of these five types of HRAs that are excluded from annual limit requirements outlined in health reform laws (PHS Section 2711):

1. "Integrated" HRAs: An HRA linked with a group health plan.
2. "Flexible Spending Arrangement" HRAs: A variation of a stand-alone HRA (as defined in section 106(c)(2)).
3. "Excluded" HRAs: An HRA that only reimburses non-essential health benefits (e.g. only premium expenses).
4. "Excepted" HRAs: An HRA that only reimburses limited excepted expenses (such as limited-scope dental).
5. "Retiree" HRAs: An HRA offered to retirees.

What does this mean for existing and new HRAs? According to Zane Benefits’ website, if the existing HRA does not meet one of these five types, then minor plan design changes may be needed. New HRAs will simply be set up in an ACA-compliant way.

There are several other health reform regulations that impact health insurance, employers, individuals and HRA/HSA/FSA providers.

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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