Here’s a rundown on the changes of keenest interest to insurance advisors...
Park City, UT (PRWEB) February 12, 2013
Today, Zane Benefits, Inc. published new information on Stand-alone HRAs and Health Insurance Premiums. Zane Benefits, which provides comprehensive and flexible alternatives to traditional employer sponsored health benefits, is the leader in defined contribution and health reimbursement arrangements.
According to Zane Benefits’ website, over the last 2 weeks, we have received several inquiries regarding PHS Act Section 2711 annual limit requirements and how it affects the future of stand-alone Health Reimbursement Arrangements (HRAs). This article outlines a special exemption from the 2711 rules for most stand-alone HRAs that reimburse health insurance premiums.
What Is an HRA?
According to Zane Benefits’ website, Health Reimbursement Arrangements are employer-funded medical expense reimbursement plans that reimburse employees up to a set dollar amount for medical expenses (defined in Code section 213(d)) per year. The IRS determines the rules and regulations for HRAs. Generally, HRAs must comply with Sections 105 and 106 of the Internal Revenue Code of 1986.
What Expenses Are Eligible For Reimbursement From an HRA?
According to Zane Benefits’ website, HRAs can reimburse employees for medical care expenses as defined by IRS Section 213(d), which include amounts paid for:
(A) the diagnosis, cure, mitigation, treatment, or prevention of disease,
(B) transportation costs to receive medical care described in (A),
(C) qualified long-term care services as defined in section 7702B (c), or
What Is Section 2711?
According to Zane Benefits’ website, Section 2711 of the PHS Act, as added by the Affordable Care Act, generally prohibits group health plans from imposing lifetime or annual limits on the dollar value of essential health benefits.
On June 28th, 2010, the federal government issued the following regulations for Section 2711:
No lifetime or annual limits.
(1) Lifetime limits. Except as provided in paragraph (b) of this section, a group health plan, or a health insurance issuer offering group health insurance coverage, may not establish any lifetime limit on the dollar amount of benefits for any individual.
(2) Annual limits— (i) General rule. Except as provided in paragraphs (a)(2)(ii), (b), and (d) of this section, a group health plan, or a health insurance issuer offering group health insurance coverage, may not establish any annual limit on the dollar amount of benefits for any individual.
(ii) Exception for health flexible spending arrangements. A health flexible spending arrangement (as defined in section 106(c)(2) of the Internal Revenue Code) is not subject to the requirement in paragraph (a)(2)(i) of this section.
Click here to read full article.
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.
Read the full story at http://www.prweb.com/releases/2013/2/prweb10425412.htm