Zane Benefits Publishes New Information on Standalone Health Reimbursement Arrangements

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Pros and Cons of Standalone HRAs for Small Businesses and Employees

Today, Zane Benefits, the online alternative to group health insurance, published new information on the pros and cons of standalone Health Reimbursement Arrangements.

According to Zane Benefits’ website, as a small business evaluates how to offer employees health insurance, they will likely consider a standalone HRA. Standalone Health Reimbursement Arrangements (HRAs) are an IRS-approved vehicle that allows small businesses to provide employees with tax-free contributions to their individual health insurance premiums and out-of pocket medical expenses. With a stand-alone HRA, a small business offers employees a "business expense" type of health benefit, as an alternative to a traditional group health insurance plan. Stand-alone HRAs are also referred to as "pure" defined contribution plans.

Zane Benefits provides pros and cons for both the small business and employees.

Pros for Small Businesses: According to Zane Benefits’ website, the four main pros of standalone HRAs for small businesses are: flexibility, employer control, tax savings, and employee recruitment and retention.

The five main pros of standalone HRAs for employees are: the benefits of pre-tax dollars, choice of plans, plan portability, plan value, and federal premium tax subsidies in 2014.

According to Zane Benefits’ website, there are two cons for small businesses: A Change in benefits administration, and limited tax benefits for some owners.

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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 small businesses 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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