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Sounds to me like you don't take the agent community's concerns seriously. . . The discussion wasn't very "humorous"--it voiced realistic concerns about protecting our clients from harm.
Did You Know You Can Reimburse Your Employees for Individual Health Insurance?
- Thread starter Zane Benefits
- Start date
Sounds to me like you don't take the agent community's concerns seriously. . . The discussion wasn't very "humorous"--it voiced realistic concerns about protecting our clients from harm.
First of all, it's CANDID, not candidate. Candidates run for office and are usually far less than candid in their remarks. In a way, very similar to Zane Benefits.
Secondly, your audit assurance, from memory, only relates to the fees paid to Zane, not to any penalties. The potential penalties far outweigh the fees so isn't much assurance at all.
Thirdly, this conversation is anything but humorous to brokers that work hard (and in full compliance of ACA) to help their clients and keep them out of trouble. My personal belief is that very small companies who decide to use Zane will probably escape any kind of audit but, at some point in time, it could easily catch up to them and the financial risk far outweighs the gains. So, as one of the 'Sharks' would say, 'for those reasons, I'm out'.
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"Secondly, your audit assurance, from memory, only relates to the fees paid to Zane, not to any penalties. The potential penalties far outweigh the fees so isn't much assurance at all."
So... Zane rep? Your assurance is zane will return their fees? You knew exactly what I was asking about with my question. I was talking IRS penalties for following the Zane model, if and when the IRS rejects it and backdates the penalties to the group.
Your concept made the rounds a couple years ago and most CPAs that I presented to wanted nothing to do with it. Sorry, their experiences with the IRS and rulings that backdate give them pause to recommend the Zane solution to any business.
Unfortunately, your answers here just confirm that idea.
Sorry, most of us here serve long term clients. Putting them in a situation where they get penalized isn't in their best interests, nor is it in ours.
So... Zane rep? Your assurance is zane will return their fees? You knew exactly what I was asking about with my question. I was talking IRS penalties for following the Zane model, if and when the IRS rejects it and backdates the penalties to the group.
Your concept made the rounds a couple years ago and most CPAs that I presented to wanted nothing to do with it. Sorry, their experiences with the IRS and rulings that backdate give them pause to recommend the Zane solution to any business.
Unfortunately, your answers here just confirm that idea.
Sorry, most of us here serve long term clients. Putting them in a situation where they get penalized isn't in their best interests, nor is it in ours.
I looked up the Zane 'Assurance Program', it confirmed my memory, that reimbursement is limited up to the amount of the fees paid to Zane:
Zane Benefits will support and assist any enrolled Client who has its Plan challenged by the Internal Revenue Service, as long as the Client has adhered to all Plan procedures and parameters. Specifically, Zane Benefits will provide:
- Plan Documentation (upon request)
- Evidence of Plan Implementation records
- Evidence of Plan Communications records
- Records of expense adjudication
- Copies of written communications between the Client and Zane Benefits relating to the Plan
In addition, if all Plan procedures are adhered to (including recommended updates as regulations change), and the Client has corrected any failure to operate the Plan according to Planprocedures within the 30 days permitted by the IRS to avoid excise taxes under IRC 4980D, Zane Benefits will assume financial responsibility for any penalty under IRC 4980D as a result of an audit as it pertains to ZaneHealth up to the amount the Client has paid Zane Benefits for services during the twelve (12) months prior to the date the penalty is paid.
Zane Benefits reserves the right to modify or cancel the Audit Assurance at any time
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Thanks. Yea, she gave a BS answer.
Why she would do that in this day and age just beats me?
Thanks again.
Why she would do that in this day and age just beats me?
Thanks again.
Can I speak candidately...
didn't answer not one damn question in my opinion... spinning at its best.....
Good morning sir, Im Special Agent John Doe from the Department of Treasury, we have a few questions for you....
Good morning sir, Im Special Agent John Doe from the Department of Treasury, we have a few questions for you....
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pesky facts.... hate that... interpretation to follow spinning like a top in a mexican square
- Thread starter
- #30
Zane Benefits
Expert
To clarify, this type of reimbursement plan is an ERISA group health plan, but it is not a group health insurance plan. As such, it is not considered minimum essential coverage and does not disqualify employees and dependents from the premium tax credits. In other words, an employee could purchase individual health insurance from the Marketplace, access subsidies, and be reimbursed for the non-subsidized portion of their premium.
Best regards,
Christina
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