Individual Health Insurance Policy Overview - February 2009

The Treasury Department and IRS issued new guidelines for people contributing to a Health Savings Account (HSA) in 2010.

FSAs (Flexible Spending Accounts) are governed by Section 125 of the Internal Revenue Code.

A salary reduction agreement is a written agreement between an employee and their employer in which the employee elects an amount of taxable income to be voluntarily withheld from their pay.

HRAs (Health Reimbursement Arrangements) are governed by Section 105 of the Internal Revenue Code.

In a previous post, Rick described how a self-insured group health plan works. The purpose of this post is to provide an example of how HRAs and individual policies (what we call "ZaneHRA") might replace a company's self-insured health plan. 

Professor Paul Zane Pilzer is scheduled to speak with Mike Rosen of 850 KOA Radio today.

Yes. Under Section 1.125-1(m), employees are able to reimburse themselves for personal health insurance policy premiums tax-free. See below for the pertinent section of the New Regulations for Cafeteria Plans. Many companies provide Section 125 Administration for group health insurance. See www.zanebenefits.com/employee for an example of how this works for your individual health insurance plan.