What are employer-sponsored premiums?
Employer-sponsored health insurance refers to any medical, dental or vision insurance obtained through an employer on behalf of its employees. Employer-sponsored health insurance may include medical, dental or vision coverage under plans such as:
- Group health insurance
- Retirement benefit plans
Typically, the employer will make a contribution towards the cost of the coverage for employees, while the employee’s portion will be deducted from their paycheck. The employee’s portion may be deducted pre-tax or post-tax. Participants whose spouse has an employer-sponsored premium may wish to submit this premium expense for tax-free reimbursement through their Zane Benefits plan. This will have certain tax implications if the spouse’s premium is deducted tax-free.
How to Allow (or Not Allow) Employer-Sponsored Premium Reimbursement
1. From your online administrator account, click My Account > Account Settings.
2. Scroll down to the Participant Permissions section to locate current settings.
3. Check or uncheck Allow Claims for Employer-Sponsored Premiums and click Save Changes.
- If you check the box (allow), employees will be allowed to submit a claim for an employer-sponsored health insurance premium.
- If you do not check the box (disallow), participants cannot be reimbursed for any employer-sponsored premium (both pre-taxed or post-taxed) and any claims submitted for an employer-sponsored health insurance premium will not be approved. Participants who are impacted by this may wish to opt out of their spouse’s employer-sponsored plan and purchase their own individual policy.