Navigation Links
HRAs vs. GAP Health: Zane Benefits Publishes Information
Date:12/9/2012

(PRWEB) December 09, 2012

Zane Benefits, the leader in Defined Contribution and Health Reimbursement Arrangement (HRA) solutions for business health benefits, today published an article outlining the difference between HRAs and GAP Health Insurance.

With the cost of employer-sponsored group health insurance continuing to rise, businesses are seeking solutions to help save on the cost of offering group health insurance.

One of the most common cost savings solutions for employers is to raise the deductible on their existing group health plan. Health Reimbursement Arrangements (HRAs) (for tax-free medical expense reimbursement) and GAP (or "bridge") health insurance plans are the two most common mechanisms to cover the added employee benefit exposure.

What is a Health Reimbursement Arrangement?

A Health Reimbursement Arrangement, is an IRS approved, employer-funded, tax advantaged employer health benefit plan that reimburses employees for out of pocket medical expenses. A health reimbursement arrangement is not health insurance. A health reimbursement arrangement is often referred to (incorrectly) as a health reimbursement account.

What is GAP Health Insurance?

GAP, or "bridge" health insurance premiums are paid to cover portions of out of pocket medical expenses under a group health insurance plan. Typically, an employer may pay (or allow employees to pay) for GAP health insurance to supplement a high-deductible group health insurance plan.

Health Reimbursement Arrangements vs. GAP Health Insurance

Health reimbursement arrangements are notional arrangements; no funds are expensed until reimbursements are paid. Through health reimbursement arrangements, employers reimburse employees directly only after the employees incur approved medical expenses.

GAP health insurance is an insurance premium, or expense, that an employer or employee incurs regardless of actual medical utilization. The premiums are paid to cover expenses that may happen over time.

Why Businesses Prefer HRAs

(1) Businesses prefer HRAs to GAP health insurance for the following reasons:
(2) No premiums are paid to a health insurance carrier with an HRA
(3) Employers control all HRA reimbursements and plan design
(4) An HRA can cover more eligible expenses than GAP insurance - see HRA Eligible Medical and Insurance Expenses
(5) HRA expenses are based on actual utilization, and the business keeps unused funds
(6) Minimized administration hassle and employee confusion

  • - -
About Zane Benefits, Inc.
Zane Benefits, Inc, a software company, helps insurance brokers, accountants, and employers take advantage of new defined contribution health benefits and private exchanges via its proprietary SaaS online health benefits software. Zane Benefits does not sell insurance. Using Zane’s platform, insurance professionals and accountants offer their clients a defined contribution plan with multiple individual health insurance options via a private health exchange of their choice.

Read the full story at http://www.prweb.com/releases/2012/12/prweb10176628.htm.


'/>"/>
Source: PRWeb
Copyright©2012 Vocus, Inc.
All rights reserved

Related medicine news :

1. Microbial Threats to Health: IOM Symposium Explores 2 Decades of Progress
2. Potty-Training Method Wont Affect Tots Health: Study
3. Right Amount of Exercise Can Boost Mental Health: Study
4. Too Much Salt Might Harm Kids Health: Study
5. Spirituality May Boost Mental Health: Study
6. Regulatory science for public health: From functional food to modified-risk tobacco products
7. Physical Ailments Take Toll on Mental Health: Study
8. Spanking Batters Kids Mental Health: Study
9. Business Travel Harmful to Health: Medical & Personal Fitness Experts Announce "Exercise is Solution to Many Travel Ailments"
10. Education Is Key to Health: Report
11. Climate Change Could Be Tough on Seniors Health: Study
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/10/2016)... ... ... Early this week, Team Iconic at J. Walter Thompson and Nestlé KITKAT ... global confectionery brand sourced from 100% sustainable cocoa. , The Nestlé Cocoa Plan aims ... activities that focus on better farming, better lives and better cocoa. In order to ...
(Date:2/10/2016)... PA (PRWEB) , ... February 10, 2016 , ... As ... offer two webinars in February 2016. Each webinar features a dynamic expert and ... to benefit their athletes, patients and facilities. Both events are free to attend, ...
(Date:2/10/2016)... ... ... Emergency rooms provide emergency care to stabilize critical health issues, but emergency ... emergencies at risk of losing a tooth or their smiles. Dr. Marine Martirosyan, ... emergencies include:, , Avulsed or knocked-out teeth , ...
(Date:2/10/2016)... St. Louis, Missouri (PRWEB) , ... February 10, ... ... 11-14, 2016, in San Diego, will bring together more than 200 of the ... in healthcare for the future. , “The true benefit of the Forum is ...
(Date:2/10/2016)... ... ... AHRA: The Association for Medical Imaging Management announced today ... as keynote speaker at the organization’s 2016 Spring Conference. Fox’s topic, Lead with ... with their own organizational staff and leadership. , “I am so excited ...
Breaking Medicine News(10 mins):
(Date:2/10/2016)...  The ALS Association, in partnership with ALS Finding a ... a biomarker to track TDP43 aggregation. The successful team(s) with ... million investment. --> --> ... cells in the brain and the spinal cord. Eventually, people ... movement, which often leads to total paralysis and death within ...
(Date:2/10/2016)... 2016 Puerto Rico Healthcare and Life ... Healthcare and Life Sciences Report 2016 . --> ... Rico Healthcare and Life Sciences Report 2016 . ... largest territory in the world for pharma manufacturing, a territory ... manufacturing, and more universities per square mile than anywhere else ...
(Date:2/10/2016)... 2016  Visage Imaging Inc. ("Visage"), a wholly ... announced that the American College of Radiology (ACR) ... the Visage 7 Enterprise Imaging Platform as the ... Imaging SIMulation (SIM). SIM is the assessment component ... a multi-faceted and fully-integrated online assessment, education and ...
Breaking Medicine Technology: