Health Reimbursement Account
A Health Reimbursement Account (HRA) is an employer-funded account to be paired with a High Deductible Health Plan (HDHP). HRAs pay for some or all of deductible expenses formerly paid by insurance, which results in lower premiums and health cost savings, in general.¹ Since the maximum amount of money is set by the employer; employees cannot contribute to HRAs.
HRAs prove advantageous to both the employer and the employee. Employers can purchase lower cost high-deductible insurance with an HRA plan, providing their employees with broader coverage at reduced cost. Employers decide what the contribution will be; therefore, there is no requirement to increase employee contributions when the insurance company increases premiums.
Employees are in control of their healthcare, giving them freedom to choose the carrier and plan that best fits their family’s needs.
HRAs are easy to administer and understand. They are extremely flexible and exempt form state insurance rules.
For more information, and to find out if an HRA is right for you, contact Shannon McMeel today!