Health Reimbursement Arrangement (HRA) | eflexHRA

Products & Services | HRA

HRAs have become increasingly popular due to the rising cost of health care premiums. Because HRAs are flexible, employers can purchase higher deductible health plans with significant premium savings. They then self-fund a portion of the high deductible (or benefits) with an HRA so employees don’t feel the burden of the high deductible plan.

For example: An employer with 50 employees in a PPO group health insurance plan, with a $500 deductible (total employee health insurance costs of $220,000) may see renewal premium increase of 40% (an additional cost of $89,000 for a total of $309,000). It is difficult to control profitability for the company when insurance premiums increase costs year to year. But, with an eflexHRA, you can stop those rising costs.

By selecting a higher deductible health plan, and purchasing an HRA, the employer can create savings in their health programs by implementing a plan employees enjoy using, and also help the company control costs effectively.

Employers and Employees win in several ways:

  • Flexibility in controlling escalating benefit costs
  • Flexibility in benefit choices
  • Employee retention and attraction
  • FICA Tax savings of 7.65% on every dollar that is utilized through the plan. Ready to crunch the numbers? See our Savings Calculator.

A Health Reimbursement Account (HRA) is a type of self-funded account regulated by Section 105 of the Internal Revenue Code. It enables employers to purchase group health insurance plans with high deductibles, then self insure a portion of the plan to keep out-of-pocket expenses manageable for covered employees. There are countless options in designing an HRA. The most common HRA funds a portion of the plan deductible. Many employers add funding for co-pays, prescription drugs, and other expenses to the HRA. However, the employer must identify qualified claims at the plan inception. HRAs may “rollover” all or some of the unused account balances.

Click here to get our eflexHRA flyer or, contact us now. 

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