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:7/24/2017)... ... ... The International Essential Tremor Foundation (IETF) will host a free educational forum ... will take place on Saturday, Aug. 26 at the Embassy Suites by Hilton Cleveland ... 9 a.m. to 12 p.m., with check-in beginning at 8 a.m. The event is ...
(Date:7/24/2017)... ... July 24, 2017 , ... The Topricin Companies, ... awareness for Topricin’s revolutionary, natural, after-burn skin care product, Topricin After Burn Cream. ... of long term skin conditions, including cancer. In the short term, overexposure ...
(Date:7/24/2017)... Beach, California (PRWEB) , ... July 24, 2017 ... ... commercialization of autologous fat (adipose) transfer systems announces the issuance of United States ... ‘324 patent) for its adipose filtration technology. The '398 and '324 patents ...
(Date:7/24/2017)... , ... July 24, 2017 , ... Sharon Kleyne, host ... and Your Health on VoiceAmerica sponsored by Nature’s Tears® EyeMist® recently talked on the ... of myopia in China. , The article by Zidor Aldama described the situation in ...
(Date:7/24/2017)... Calif. (PRWEB) , ... July 24, 2017 , ... A ... from food addiction to sexual abuse, and how she has overcome them. “Forbidden Memories: ... instances in her life and how she has risen above. , In “Memories,” readers ...
Breaking Medicine News(10 mins):
(Date:7/21/2017)...  Endo International plc (NASDAQ: ENDP ) ... its manufacturing network, the Company will be ceasing operations ... Huntsville, Alabama . The closure of the ... 12 to 18 months. The Huntsville ... commoditized products and these restructuring actions are intended to ...
(Date:7/17/2017)... , July 17, 2017  MedX Holdings, Inc., ... medical testing, strengthening and rehabilitation equipment, today announced the ... Program. MedX is considered the gold standard for the ... in specialized medical strengthening equipment. ... lease with the physician or practice who prescribe the ...
(Date:7/13/2017)... -- Centurion Medical Products, a leader in medical product innovation and global ... device for hospice patient care. ... Centurion Medical Products ... Patient pain management and emotional comfort are part of a hospice,s ... while preventing unneeded emergency department admission due to severe fecal impaction. ...
Breaking Medicine Technology: