Zane Benefits is proud to announce its new health benefits solution - ZaneHealth. This article provides an overview of ZaneHealth, and what it means for current clients.
What is ZaneHealth?
ZaneHealth is a healthcare reimbursement program -- very similar to ZaneHRA. ZaneHealth allows employers to reimburse individual health insurance premiums in 2014 and creates controllable costs, happier employees, and more time for meaningful work. With ZaneHealth, employees receive choice, flexibility, and lower cost health insurance.
Why ZaneHealth?
The Affordable Care Act and its associated regulations have impacted the rules around how employers can use “stand-alone” Health Reimbursement Arrangements (HRAs).
These changes restrict employers from using ZaneHRA in the long run. Because of this, many employers using ZaneHRA will be transitioning to ZaneHealth over the next year.
(See Technical Release No. 2013-03)
How is ZaneHealth Different than ZaneHRA?
ZaneHealth is very similar to ZaneHRA in that it allows your company to provide monthly healthcare allowances to employees, reimburse employees for individual health insurance premiums, and customize your health benefits program with different Employee Classes. However, the Affordable Care Act requires that plans now only cover:
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Health insurance premiums up to a specified monthly healthcare allowance; and
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Basic preventive health services as required by Public Health Services (“PHS”) Act Section 2713.
Employers may elect to require employees to show proof of having non-grandfathered minimum essential coverage to be eligible for the ZaneHealth. This ensures employees receive 100% preventive health services coverage via their own health insurance plan (e.g. an individual plan or spouse’s employer plan).
What this Means for Employers Currently using ZaneHRA
If you are currently using ZaneHRA, we will work with you to create a plan for converting from ZaneHRA to ZaneHealth when your new plan year begins.
Please note one-person ZaneHRA plans are not impacted and can continue to exist in 2014 and beyond.
If you have any questions or concerns, please do not hesitate to contact your Zane Benefits Account Executive at 800.391.9209 x1 or support@zanebenefits.com.
