In today’s marketplace, many people get their health insurance coverage from a spouse’s benefits plan; however, a growing number of married couples maintain separate individual health insurance coverage.
IRS Publication 502, Medical and Dental Expenses, defines medical care for the purpose of deducting medical expenses and reimbursing medical expenses through programs such as HSAs and HRAs. Health Reimbursement Arrangements, or HRAs, are defined contribution plans through which employers can reimburse their employees for eligible medical expenses.
Uncertainty is a latent variable. It is difficult to quantify however, if you are a small business owner and looked into alternatives to traditional group health insurance for your business over the last few years, you have no doubt experienced your fair share of elevated uncertainty. For decades small businesses have been using medical reimbursement plans to reimburse employees for their own individual health insurance premiums. These arrangements are explicitly allowed under current tax code as well as prior IRS guidance. In 2002, the IRS published Notice 2002-45 that provided the blueprint for companies to reimburse employees tax-free through plans referred to as HRAs. These plans provided an alternative to traditional group health insurance that were vital for small businesses that needed to offer a health benefit in order to compete with more established companies. Small businesses often lack the human resources to take on the burden of administering group health insurance. Moreover, the rapidly changing small group market promises that significant time will be required each year to assess benefit options and sustainability as carriers enter and leave the market, costs escalate and employees discover the same or better coverage options on the individual market.
On November 18, 2015, the Departments of the Treasury, Labor and Health and Human Services issued final rules regarding many of the Affordable Care Act’s “Market Reforms.” Among the reforms addressed, the Departments highlighted the annual dollar limit prohibition (Public Health Service (PHS) Act section 2711) in relation to reimbursement plans. This article breaks down the language in the notice and how it relates to Zane Benefits' solutions for reimbursing individual health insurance.
It’s no secret that the world of health insurance benefits is complex and always changing. Learning how to calculate Employer Shared Responsibility fees this year requires answering a handful of essential questions, but first let’s take a look at what the provision really boils down to.
From Flexible Spending Accounts to transportation costs, the IRS sets annual limits and guidelines. This article provides a quick reference chart for 2015 IRS plan limits for various types of health and employee benefits.
Employees now have two new options for getting out of their employer’s group health plan mid-year. The new regulations (IRS Notice 2014-55) outline two additional ways employees covered by their employer’s cafeteria plan can change their health insurance plan elections during a plan year. Here’s what you need to know about the new cafeteria rules effective September 12, 2014.
Group health plans that fail to cover hospital care will not meet the minimum value health plan standard under the Affordable Care Act, according to a Department of Health and Human Services (HHS) notice issued Tuesday. The announcement impacts larger employers who were designing "skinny plans" to offer bare bones coverage to employees while avoiding the employer shared responsibility fee.
The Affordable Care Act (ACA) designed the Small Business Health Options Program (SHOP Marketplace) to provide small employers with more choices for their healthcare plan. One of the aspects of the SHOP Marketplace that makes it appealing for small businesses is the Small Business Health Care Tax Credit available to some small employers. According to a recent IRS notice, the ongoing federal budget sequestration is going to have an impact on the Small Business Health Care Tax Credit program for tax-exempt employers.
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.