A health reimbursement arrangement (HRA) is a great way to combat the rising cost of health care. Offering an HRA allows you to provide a valuable benefit to your employees, giving them access to funds to pay for eligible out-of-pocket expenses, while your organization reaps significant premium savings.
In an effort to keep group health benefit costs manageable, many employers have moved from traditional co-pay based options to plans with an upfront deductible resulting in increased out-of-pocket expenses for employees. To off-set these out-of-pocket costs, companies are offering Health Reimbursement Accounts (HRA) that can be used in conjunction with high deductible health plans to curtail premium costs.
Bouchey & Clarke Benefits, Inc. provides our clients with a complete spectrum of resources to administer HRA programs. We will produce financial models to allow you to estimate the financial impact to your organization of implementing an HRA and also provide models for employees to estimate their financial exposure. We can leverage a number of internal and carriers resources to deliver a fully integrated platform to service all your needs.
The Advantages for Employers
HRAs are similar to other reimbursement accounts, but they’re funded solely by employers. As the plan sponsor, you get to decide: 1) who can participate, 2) which eligible expenses will be covered, 3) how much you will contribute, 4) how the plan is structured and other key plan components.
Additionally, 100% of reimbursements are tax-deductible for your organization and contributions are tax-free to the employee. Save even more by pairing an HRA with a high deductible health plan (HDHP) that offers core health care benefits. When you do, you’ll continue to provide your employees traditional health insurance coverage — along with a plan that reimburses them for eligible expenses. You will see your premium costs go down and your savings go up.
The Advantages for Employees
Health reimbursement arrangements offer several key benefits to employees, including:
- All HRA funds used by employees to pay for eligible expenses are completely tax-free to the employee
- The power and freedom to choose their health care services without managed care limitations
- Teaches employees to be better, more engaged health care consumers, resulting in better health care decisions and healthier lifestyles
To learn more about our HRA administration services, contact us at 518-720-8888 or email email@example.com.