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Zane Benefits Publishes New Information on How to Reimburse Exchange Health Insurance
Date:11/27/2013

Park City, Utah (PRWEB) November 27, 2013

Today, Zane Benefits, the number one online small business health benefits solution, published new information on how to reimburse exchange health insurance.

According to Zane Benefits’ website, a common question from employers is "can we reimburse employees' subsidized exchange premiums?" The answer is yes. According to current regulations employers can use a limited-purpose Section 105 Medical Reimbursement Plan, sometimes called a Healthcare Reimbursement Plan (HRP), to reimburse employees for their qualified health insurance premiums, including the unsubsidized portion of individually-purchased subsidized exchange policies.

As employers plan their health benefits strategy for 2014 and beyond, many are looking at ways to incorporate the advantages, and cost savings, of individual health insurance, the health insurance exchanges, and the individual health insurance tax subsidies. Others are just tired of group health insurance, or have never been able to afford it. One of the strategies growing in popularity is setting up an HRP to reimburse employees for their eligible health insurance expenses. This type of health benefits strategy is also called a "pure" defined contribution approach because the employer provides a healthcare allowance instead of a traditional group health insurance plan.

IRC Section 105 is the foundation of employer-sponsored medical reimbursement plans, including an HRP. Section 105 of the IRS Code allows employers to reimburse an employee for medical and insurance expenses incurred by the employee or his or her dependents. A Section 105 HRP
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