Alliance 125-Health Reimbursement Accounts (HRA's)

Over the last 10 years, most group health plans have seen rate increases in excess of 70%. Unfortunately, the fist step (and sometimes only)  for a group facing a large increase is to decrease the benefits and therefore increasing the out of pocket cost the employee is responsible for.

HRA accounts have been around for a long time, however, they are only now becoming worth while as insurers are offering larger incremental cost savings to groups who are willing to take on the burden of a high deductible. The HRA account allows groups to retain control of healthcare spending while at the same time taking advantage of these savings. The HRA allows the employer to reduce cost with out passing on the full out of pocket cost to the employees. A properly established HRA account can be a useful tool in curbing increases as well as establishing a healthcare reserve to off set future increases.

For more information on how an HRA can work for you, please contact one of our Employee Benefit Consultants. We’d be happy to work up an illustration.