Park City, Utah (PRWEB) March 28, 2013
Today, Zane Benefits, Inc. published new information on healthcare benefit allowances. 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, Health Reimbursement Arrangements (HRAs) and defined contribution health benefits are types of healthcare benefit allowances.
What is a Healthcare Benefit Allowance?
According Zane Benefits’ website and Investopedia, a benefit allowance is: "Money that a company or government agency provides to an employee for a specific purpose, such as transportation, healthcare costs or a flexible spending account. Benefit allowances administered to employees can be distributed through regular payroll."
Therefore, a healthcare benefit allowance is simply an allowance a company or organization provides to employees for healthcare expenses.
How Healthcare Benefit Allowances Work
According Zane Benefits’ website, employers can use a healthcare benefit allowance to give employees flexibility in creating a benefits package that best meets their needs. Rather than imposing a particular healthcare plan on all employees, the employer could offer a healthcare benefit allowance (such as a Health Reimbursement Arrangement or HRA). Employees could use their healthcare benefit allowance for eligible medical expenses of their choosing, including:
- A personal or family insurance plan that fits their specific needs
- Supplemental coverage like dental or vision insurance, or coverage for dependents
- Eligible out-of-pocket medical expenses such as doctor visit copays, prescriptions, physical therapy and emergency visits
Employer Control, Employee Choice
According Zane Benefits’ website, healthcare benefit allowances give employers greater control over monthly health benefits costs, and give employees more choice in their health care coverage. With a healthcare benefit allowance, the employer sets their own parameters, including:
- Which types of medical expenses to cover
- Maximum contribution amounts
- What happens to unused contributions
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.