Navigation Links
HRAs vs. GAP Health: Zane Benefits Publishes Information

(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

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:
(Date:11/24/2015)... ... November 24, 2015 , ... Brillouin Energy ... Brillouin is the developer of renewable energy technologies capable of producing commercially useful ... announced today that its WET™ and HHT™ Boiler System reactor core modules were ...
(Date:11/24/2015)... , ... November 24, 2015 , ... ... the United States to support their local poison centers through donations on Tuesday, ... #GivingTuesday: calls it “a day that inspires people to collaborate in improving ...
(Date:11/24/2015)... ... , ... Aided by seed funding from the Ron Foley Foundation, researchers at ... into how to detect and treat pancreatic cancer (PC). , WCHN researchers will ... molecules (ncRNA), genetic material that is present in the blood of patients with PC. ...
(Date:11/24/2015)... ... ... Willey , has answered a new calling – to relieve snoring and sleep apnea for ... and sleep apnea through oral appliance therapy. He is one of a number ... of four in the Illinois area. , Dr. Willey’s location is at 11825 ...
(Date:11/24/2015)... ... , ... Autism Speaks, the world’s leading autism science and advocacy organization, will ... generosity of people around the world. On December 1, supporters can make an online ... share the personal stories behind those gifts. , Just as Black Friday and ...
Breaking Medicine News(10 mins):
(Date:11/24/2015)... 2015 Teledyne DALSA , a Teledyne Technologies ... will introduce its CMOS X-Ray detector for mammography ... to December 3, at McCormick Place in Chicago ... and interventional imaging will be on display in the South ... advanced CMOS X-Ray detectors is the industry benchmark for high ...
(Date:11/24/2015)... , Nov. 24, 2015  Boston Scientific Corporation (NYSE: ... Oppenheimer 26th Annual Healthcare Conference on December 8, in ... Susie Lisa , vice president, Investor Relations, will participate ... beginning at approximately 8:35 a.m. ET. --> ... in a 30-minute question-and-answer session with the host analyst ...
(Date:11/24/2015)... November 24, 2015   ... dietician deliver s advice and insights on ... More than 50% of Dubai ... healthy according to the DHA   femMED launches comprehensive solutions ...    Dubai residents are not consuming enough to ...
Breaking Medicine Technology: