Important Notice Regarding Pre-Tax Health Insurance (Section 125)

Zane Benefits logoLast year, Zane Benefits introduced a pilot program utilizing the pre-tax health insurance concept (originally referred to as the “Pre-tax Premium Payment (PPP)” program). The PPP program provided the opportunity for employers to set up a Section 125 cafeteria plan that allowed employees to set aside a portion of their paycheck voluntarily. The money set aside would be used to pay for individual health insurance premiums using pre-tax dollars.

Recently, the Department of Labor issued guidance on the Affordable Care Act. The release included a discussion of Section 125 cafeteria plans and individual health insurance. As a result of this new federal guidance, Zane Benefits will no longer be promoting the pre-tax health insurance program.

Any DeWitt Risk Management groups who wish to continue to allow employees to take advantage of the section 125 cafeteria plan for individual health insurance premium, are encouraged to consult with their legal counsel.

We will continue to work with providers intent on exploring other affordable insurance options for employees of small employers that do not provide group health insurance.  Please get in touch with your group benefits specialist at DeWitt Risk Management with any questions or to discuss alternate options for your group or company.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s