Note: This should not be taken as tax or legal advice.

Recently, the state of Georgia passed a bill that explicitly exempts Health Reimbursement Arrangements (HRAs) and individual health insurance policies from the state's small group health insurance regulations.

According to Georgia Insurance Code Section 33-51-7:

§ 33-51-7. Health reimbursement arrangement only  (a) The Commissioner shall be authorized to allow health reimbursement arrangement only plans that encourage employer financial support of health insurance or health related expenses recognized under the rules of the federal Internal Revenue Service to be approved for sale in connection with or packaged with individual health insurance policies otherwise approved by the Commissioner. (b) Health reimbursement arrangement only plans that are not sold in connection with or packaged with individual health insurance policies shall not be considered insurance under this title. (c) Individual insurance policies offered or funded through health reimbursement arrangements shall not be considered employer sponsored or group coverage for purposes of this title, and nothing in this Code section shall be interpreted to require an insurer to offer an individual health insurance policy for sale in connection with or packaged with a health reimbursement arrangement or to accept premiums from health reimbursement arrangement plans for individual health insurance policies.

Individual policies reimbursed by ZaneHRA meet the requirements of Section 33-51-7 because:

1. ZaneHRA is a health reimbursement arrangement only plan;
2. ZaneHRA is not sold in connection with or packaged with specific individual health insurance policies; and
3. The employer/employees do not treat specific individual health insurance plans as a part of an employer-sponsored plan or program.