The Obama administration announced yesterday that 8 million Americans enrolled in coverage through the Affordable Care Act (ACA) individual health insurance marketplaces. Another 3 million Americans have signed up for Medicaid, while 5 million have signed up for non-exchange health plans.
Defined contribution health plans are becoming more and more popular. A recent study found that 47% of employers are moving to defined contribution, with another quarter of employers considering it. As your company or client considers this approach, the most common question is "how does it work?". Here is a simple overview - the nuts and bolts - about how "pure" defined contribution health plans work.
Health care reform is accelerating the move to defined contribution health models. Employers are rethinking not if they will offer health benefits - but how. Employers are moving to defined contribution health models because employees have more choice over health plans and employers have more control over the cost.
This article outlines Section 105 plan rules and requirements. What is a Section 105 Plan? A Section 105 plan allows an employer to reimburse an employee for medical and insurance expenses incurred by the employee or his or her dependents. The most common type of Section 105 plan is a self-funded (or self-insured) health plan, where the employer self-funds (or self-insures) health benefits rather than pay premiums to an insurance company. However, Section 105 plans are also frequently found in the form of medical reimbursement plans. For example, an employer might implement a Section 105 plan alongside a conventional employer-sponsored health insurance plan (to reimburse deductible amounts). This is also called an Integrated HRA. Or, an employer might implement a limited Section 105 plan as a stand-alone benefit, used to reimburse individual health insurance premiums. This is often called a Healthcare Reimbursement Plan (HRP). When discussing Section 105 plans in this article, we are focusing on Section 105 Plans used as a limited medical reimbursement plan (i.e. a Healthcare Reimbursement Plan or HRP). This type of Section 105 plan is often the foundation for "pure" defined contribution health benefits. Section 105 Plan Rules & Requirements To help understand the rules and requirements of Section 105 plans, here are ten (10) FAQs about how Section 105 plans are set up, administered, and offered to employees.
If you or your clients paid a lot for health care in the last year, many of those expenses could qualify as a deduction from your taxable income on Form 1040, Schedule A. Use this checklist to determine which medical expenses you can take as a deduction on your income tax return.
Every day we hear from health insurance professionals about the challenges they're facing in 2014. At the forefront of these challenges is health care reform. But, it's more than that. It's the shifting health insurance market, new technologies, new product developments, and keeping up with the competition.
From time to time, every small business owner gets stuck. From lacking the time for strategic planning, to the fear of failure, to a growth plateau, all small business owners face challenges. So, how do you get unstuck and move forward?
Disclaimer: The information provided on this website is general in nature and does not apply to any specific U.S. state except where noted. Health insurance regulations differ in each state. See a licensed agent for detailed information on your state. Zane Benefits, Inc. does not sell health insurance.