The Health Reimbursement Arrangement (HRA)
Is An Effective Financial Strategy That Reduces Benefits Costs and Keeps Employees Happy!

Health Insurance premiums rise every year, and that can limit the money available for raises, other benefits and even business growth. The HRA solution helps employers cut insurance premiums but still keep employee out of pocket medical expenses low. By getting a less expensive high deductible health insurance policy, & paying some portion of employees’ deductibles with a HRA, employers reduce their benefits costs &
Keep employees happy!
The Health Reimbursement Arrangement Solution

Replace a High Fixed Cost (an expensive health insurance policy) with…

A less expensive policy, plus a lower variable cost (actual employee medical expenses)

And get expert help to manage that variable cost effectively.

Replacing a high fixed cost with a lower variable cost is good business sense.
It’s a proven financial strategy you can now use to control your benefits costs!

Explore our easy to understand HRA plans!

PROBLEM

Group health insurance premiums continue to rise by 5% to 11% each year, and there is no reason to expect this to change.

Deductibles and out-of-pocket limits are also increasing.

Your options aren’t pleasant: either increase your benefits budget or pass more of the cost on to your employees.

SOLUTION

Get an inexpensive High Deductible Health Plan for your employees, and pair it with a Health Reimbursement Arrangement (HRA) to cover their medical expenses.  It’s deductible to you, cuts your benefits costs, and it’s tax- free to your employees!
  • Higher deductible policies are much less expensive!  Use part of the savings to pay for care, and the rest to reduce your costs.
  • Employees are happy, because their out of pocket expenses remain low.
  • HRA’s are very efficient.  You only pay for care your employees actually receive, instead of paying insurance premiums for expenses they never incur.
  • Accounts are funded and owned by the employer, not the employee. Employees cannot take the accounts with them if they resign or are relieved.
  • You can split the cost with your employees. For example, you can have your employee pay 50% of each bill, and you pay the other half for them through their HRA.

Done right, HRAs are also an effective employee engagement strategy.
They can be designed to:
**Reward employees who pay attention to their medical expenses
**Have employees share in the cost of their medical care
Both approaches encourage employees to hold down costs and use their benefits wisely.

Plan Comparisons

For a group with 20 Employees:

Plan Without HRA:

$20 Copay


$500 Deductible

.


 

Premiums Per Person

$1,000


 

HealthCare Policy Monthly Total:

$20,000


Plan With HRA:

$20 Copay


$5000 Deductible

**HRA that pays $4,500 of Deductible ANNUALLY**


 

Premiums Per Person

$500


 

HealthCare Policy Monthly Total:

$10,000

HRA Monthly Average Estimates:

$2,250

Final Total:

$12,250


 

The Group Saves
$93,000 Per Year!

Need Help? Don’t Worry – We’re Here To Help!

Call us and get answers to any questions you may have, or talk to one of our local agents.