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Zane Benefits Publishes New Information on Reimbursement of Health Insurance Premiums
Date:8/11/2013

Park City, Utah (PRWEB) August 11, 2013

Today, Zane Benefits, the number one online small business health benefits solution, published new information on reimbursement of health insurance premiums.

According to Zane Benefits’ website, a common question from employers is "Can I reimburse employees for the cost of their personal policy premiums?" Yes. By using an IRS-approved HRA, employers can provide tax free reimbursement to employees for their personal premium policies in a compliant way.

According to Zane Benefits’ website, from a regulatory standpoint this is allowed because the HRA itself is the "Plan," not the personal premiums purchased with HRA funds. HRAs are qualified ERISA- and HIPAA-compliant group health benefits plans. As such, employees in the same HRA class must receive the same HRA allowances. However, the medical items (including personal health policy premiums) that each employee chooses, are not considered part of the qualified group health benefits plan.

For this reason, according to Zane Benefits’ website, HRAs are allowed in every state to reimburse employees tax-free for their personal policy premiums (or other out-of-pocket medical expenses), even though employees typically pay different amounts for personal policy premiums and medical purchases.

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