The Department of the Treasury and the Internal Revenue Service released new guidance that is “designed to expand the use of income annuities in 401(k) plans.”
Park City, Utah (PRWEB) February 08, 2013
Today, Zane Benefits, Inc. published new information on the Individual Health Insurance Mandate Tax Penalty. Zane Benefits, which provides comprehensive and flexible alternatives to traditional employer sponsored health benefits, is the leader in defined contribution and health reimbursement accounts.
According to Zane Benefits’ website, beginning in 2014, the Affordable Care Act includes a mandate for most individuals to have health insurance. If an individual fails to meet the requirements of the mandate, he or she will be required to pay a tax penalty. Specifically, the individual mandate requires individuals to maintain "minimum essential coverage" for themselves and their dependents. Here are some frequently asked questions (FAQs) about the mandate:
What is Minimum Essential Coverage?
According to Zane Benefits’ website, Minimum essential coverage is the minimum amount of health insurance coverage an applicable individual must purchase to avoid paying the penalty.
What Types of Coverage Qualifies as Minimum Essential Coverage?
According to Zane Benefits’ website, the following plans qualify as minimum essential coverage:
1. Coverage under government sponsored programs (e.g. Medicare and Medicaid).
2. Coverage under an "eligible employer-sponsored plan".
3. Coverage under a plan offered in the individual market within a State.
4. Coverage under a grandfathered health plan.
5. Other coverage, such as coverage under a State risk pool, that the Secretary of Health and Human Services (HHS) chooses to recognize as minimum essential health coverage.
Minimum essential coverage does not include:
1. Coverage consisting of excepted benefits, such as dental-only coverage.
2. Employer-based coverage that is not offered through an "eligible employer-sponsored plan", such as a Health Reimbursement Arrangement.
What is an “Eligible Employer-Sponsored Plan?”
According to Zane Benefits’ website, coverage under an eligible employer-sponsored plan is defined as a group health plan or group health insurance coverage offered by an employer which is:
1. a governmental plan under PHS section 2791(d)(8),
2. any other plan or coverage offered in the small or large group market within a State, or
3. a grandfathered health plan offered in a group market.
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About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHRA") for Health Reimbursement Arrangement (HRAs) and defined contribution healthcare. The flagship software provides a 100% paperless administration experience to employers and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about ZaneHRA, visit http://www.zanebenefits.com.
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