Overview of HRAs
The rising cost of health care is a concern for most employers.
With the addition of an HRA, employers can enhance their
benefit package while still achieving their overall corporate
goals of lowering health benefit costs or capping
costs at their current levels.
Sometimes called defined contribution plans or Personal Care
Accounts, HRAs allow an employer-funded account to repay the
non-reimbursed medical expenses of employees and carry
unused funds forward, if desired. An HRA account may reimburse
any or all the same expenses as a Section 125 Health FSA.
One benefits package usually doesn’t fit everyone’s
needs. That’s why Section 125 Cafeteria Plans have become
such a popular benefits tool. Now, with the addition of an
HRA, employers have more choice in how much to spend on benefits
and how the benefits are delivered to their employees.
Employees have been asking for more choice and employers need
a break on benefit expenses.
With an HRA, employees get more choice and a greater say in
how their benefit dollars are spent. They have become the employer’s
partner. An HRA is a great way to meet employees’ needs
and boost the employer’s benefit package.
Click
Here for more of the Nuts and Bolts including the different
plan designs. |
