Health Reimbursement Arrangements (HRA)

As employer’s search for ways to reduce rising healthcare costs many are turning to high-deductible health plans (HDHP). Why?

Because health plans with higher deductibles mean lower premiums and savings for you. But for employees, it means more out of pocket expenses. Here’s how an HRA works with your health plan:

1. Select a high-deductible health plan that’s best for your group.

2. Decide how much you wish to allocate into a Health Reimbursement Account for each employee. You can choose the same amount for everyone or more for families. The choice is yours.

3. Design an HRA that is best for you. You can design a health reimbursement account that pays only prescriptions and/or medical expenses that are subject to the deductible. Or, you can choose a more comprehensive plan that pays for items like over-the-counter drugs, contact lenses, orthodontics, etc. The choice is yours.