Employers use the Zane Software to reimburse employees tax-free for individual health insurance premiums, similar to the way employers contribute on a tax free basis to group premiums.
The U.S. federal government has specific regulations that employers must comply with in order to reimburse employees for individual health insurance premiums without triggering ERISA plan status for the individual health insurance policies, violating HIPAA-privacy rules, or violating federal income tax regulations. The Zane Software has built-in patent pending safeguards and protections that automatically make employers compliant with these federal regulations.
Federal regulations prohibit employers from paying directly for employee's medical expenses, including health insurance premiums, outside of an HRA or other ERISA-qualified group health benefits plan. ZaneHRA automatically makes employers HIPAA and ERISA compliant with these regulations. For example, to comply with ERISA, ZaneHRA assures that all employees in a given class receive the same level of benefits and that benefits are disclosed to employees. To comply with HIPAA, ZaneHRA protects employee privacy by assuring that employers are not aware of which specific medical items, including personal health insurance policies, are purchased by employees.
Eligible insurance premiums include:
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Major medical individual health insurance premiums
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Limited benefit individual health insurance premiums
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Dental care and Vision care premiums
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Qualified Ancillary premiums (e.g. accident policies)
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Medicare Part A or B, Medicare HMO
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Employer-sponsored health insurance premiums
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Medicare Advantage and Supplement premiums
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Long Term Care insurance premiums
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COBRA premiums
Eligible medical expenses include: