Zane Benefits Publishes New Information on The Difference Between Defined Contribution and HRAs
A Concise Description of the Similarities and Differences Between a Defined Contribution Plan and a Health Reimbursement Arrangement
Park City, UT (PRWEB) July 22, 2013
Today, Zane Benefits, the online alternative to group health insurance, published new information on The Difference Between Defined Contribution and HRAs.
According to Zane Benefits’ website, simply put, defined contribution is a health benefits strategy, whereas a health reimbursement arrangement is a health benefits tool.
Pure defined contribution is a type of employer-sponsored health benefit where the employer decides an amount to contribution to employees' health benefits. Employees then use their defined contribution allowances to purchase an individual health insurance plan. With defined contribution, the employer defines an amount (a "defined contribution"), as an alternative to offering a specific group health insurance plan (a "defined benefit").
A health reimbursement arrangement (HRA) is a tool that allows an employer to offer defined contribution health benefits tax-free and as a formal employee health benefit. HRAs are one of the only IRS-approved vehicles allowed to reimburse employees' individual health insurance premiums, and therefore are a critical part of any defined contribution health plan strategy. A health reimbursement arrangement is not health insurance, but it allows the employer to make tax-deductible contributions to employees' eligible individual health insurance and medical expenses.
About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHRA") for Health Reimbursement Arrangements (HRAs) and defined contribution health care. The flagship software provides a 100% paperless administration experience to small businesses and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about ZaneHRA, visit http://www.zanebenefits.com.
For the original version on PRWeb visit: http://www.prweb.com/releases/2013/7/prweb10951278.htm