Health Reimbursement Arrangements

An HRA or Health Reimbursement Arrangement is an agreement the employer makes to reimburse plan members for a certain amount of medical expenses incurred during the year. As health care costs rise, so do health premiums. As a result, many employers have eliminated health care coverage for their employees.

Employer's often select this plan if they want to continue to provide health care coverage, but need to hold down the cost for the overall good of the business. Savings can be up to 60% over traditional coverage options using an HRA styled health insurance plan.

Health Reimbursement Arrangements:

 Are federally-approved programs

 Best premium savings in conjunction with an HDHP

 Reimburse employees for a pre-determined amount of medical expenses (typically part of the deductible) they and their families incur during the year

 Expenses employers reimburse are tax deductible for their business and tax free for employees

 No need to pre-fund employee accounts. Pay as you go.

An HRA offers the most flexibility for the employer. The HRA is employer-sponsored and offers many design possibilities.

With an HRA, the employer determines:

 The maximum amount of annual reimbursements

 Who pays healthcare expenses first - employees or the employer through HRA reimbursements

 Whether HRA funds may be rolled over to the next year, and if so, the amount that can be rolled over

 Whether to place a cap on the amount that can be accumulated over time, and if so, the amount of the cap

 No need to prefund employee accounts. Pay as you go.

To learn more on how you can save, get a health insurance quote from JLBGHealth.com or call 800.800.5735 to speak with an expert about HRA's. You have no obligation to enroll and could save thousands on your employee health insurance plan.