It's certainly no secret that the cost of health care in the United States has soared since the onset of the Affordable Care Act. If you're like many small business owners, you've likely felt first-hand the costly impact this can have on your business' bottom line. Medical health claims are at all-time record levels and it has become routine for many employees to rely on their health insurance policy to cover every check-up, physician office visit, Rx prescription refill and other common expenses.
A growing number of Illinois business owners have found that HRA plans, or Health Reimbursement Accounts, are an effective way to save money and offer group health insurance benefits; while promoting a healthier work environment and coverage your staff can rely on.
What are the Main Benefits of HRA Group Health Plans?
An HRA is a high-deductible health insurance plan that provides business owners increased flexibility and significant cost savings. They operate in a manner that is quite similar to health savings accounts (HSA), with a number of distinct benefits to the company. Like many HSA plans, contributions are tax-free and exempt from federal income tax. Fnds can be easily accessed using a debit card, check or paper option. Additionally, contributions made to an HRA are not included in an employee's gross annual income.
That is where the similarities stop. Illinois Health Reimbursement Accounts offer a wide range of unique advantages for today's small business owner.
- Unlike HSAs, company contributions are made only when a claim is filed
- Increased freedom when setting up the coverage details of your HRA plan
- Structure contribution amounts based on specific departments, titles and other parameters
- Specify exactly which expenses are to be be covered and which will be excluded.
- HRA plans frequently follow the 80/20 rule, where 80% of claims are filed by 20% of the staff.
- HRAs are proven to prmote healthier lifestyles among employees, for greater annual savings
- Ability to merge your HRA with other accounts like HSAs and traditional group health plans.
Curious How an HRA Can Help Your Business Save?
Premier has been working with Chicago-area companies of all sizes for over a decade now, and we offer a wide range of affordable HRA employee benefit plans. To learn more about Health Reimbursement Accounts and why they're so popular right now, call Premier at 800-369-0287. Or write to us with your questions through our secure contact page.