Why Offer an HRA to Your Employees?

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Healthcare Reimbursement Arrangement, typically referred to as an HRA, can be utilized by employers to reduce their overall healthcare costs without placing additional financial burden on their employees. An HRA allows the employer to pay for eligible expenses with pre-tax dollars. The employer decides what expenses are eligible, within the IRS guidelines, leaving a lot of flexibility in plan design.

Typically an HRA is coupled with a High Deductible Health Plan and the HRA pays for either the entire deductible or a portion of the deductible. With this type of a plan the premium savings often outweigh the potential claims that the employer would have to pay if every employee used their entire deductible. The average HRA participant only utilizes 40% of the deductible so the employer savings are actually much higher. 

An HRA coupled with a High Deductible Health Plan can save you money. Most plan designs provide less exposure for employees while reducing the cost to the employer, a true win-win. We can also couple the HRA with a healthcare FSA on a single debit card at no additional cost increasing the employee and employer savings.

Employees Receive:

-Web access to transaction history, claim history and can see their available benefits

-A debit card to be used at the point of service for all accounts (FSA, transit, parking and HRA)

-Fast and accurate daily claims reimbursements

-Real-time access to account information via either phone or the Internet

-Convenient enrollment processes

Employers Receive:

-Savings associated with lower insurance premiums

-Benefits administration designed to assist you with compliance with Sections 105 and 106 of the Internal Revenue Code

-A dedicated account executive

-Plan Documents and SPDs

-Web access to service and support

-Secure access to plan participant information

-Management reports

Healthcare Reimbursement Arrangement, typically referred to as an HRA, can be utilized by employers to reduce their overall healthcare costs without placing additional financial burden on their employees.

An HRA allows the employer to pay for eligible expenses with tax free dollars. The employer decides what expenses are eligible, within the IRS guidelines, leaving a lot of flexibility in plan design. In other words, the employer builds a custom benefit plan!

Typically an HRA is coupled with a High Deductible Health Plan and the HRA pays for either the entire deductible or a portion of the deductible. With this type of a plan the premium savings often outweigh the potential claims that the employer would have to pay if every employee used their entire deductible. The average HRA participant only utilizes 40% of the deductible so the employer savings are actually much higher.

An HRA coupled with a High Deductible Health Plan that can save you money. Most plan designs provide less exposure for employees while reducing the cost to the employer, a true win-win. We can also couple the HRA with a healthcare FSA on a single debit card at no additional cost increasing the employee and employer savings.

BUT an HRA can be coupled with any plan to enhance the benefits most important to the group while still reducing premiums.

Want more information? Call us today at (215)355-2121

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