HRA - Health Reimbursement Account

[Small Town ND]

Hello everyone,

Can you tell me what you think about HRA's? Can they be great for a company and its employees?

What have your experiences been in dealing with HRA's?

 

[STIBROKER]

I think they are great........

 

[leevena]

Depends on the company and what they are trying to do. HRA's are can be more complicated to sell and service, but do fit a role for certain employers. These are general statements but, as a rule I like HSA's for groups that want to get money out of the business and into the employee hands. Usually this is a professional business, such as doctor, lawyer, dental, etc.

I like HRA's for groups that want to control their costs and see no need to "reward" employees with extra cash...unlike the HSA. The HRA tells the employee that I will pay it, but does not vest it.

good luck.

 

[ABC]

What is the size of the group you want to pitch it to?

 

[Full Throttle]

Depends on the company and what they are trying to do. HRA's are can be more complicated to sell and service, but do fit a role for certain employers. These are general statements but, as a rule I like HSA's for groups that want to get money out of the business and into the employee hands. Usually this is a professional business, such as doctor, lawyer, dental, etc.

I like HRA's for groups that want to control their costs and see no need to "reward" employees with extra cash...unlike the HSA. The HRA tells the employee that I will pay it, but does not vest it.

good luck.

Good analysis. Most of my groups fit the second scenerio, they view providing the benefits as enough. As one body shop client of mine told me a few years ago, "Why would I want to set-up a HDHP? To make it worth while for the employees, I have to give almost all the savings back to them in the form of an HSA contribution. Now I have another thing to keep track of and I didn't even save any money!"

I have a number of groups on the books, I only have exactly zero with a HDHP/HSA combination. I have many with an HRA plan design. For individual policies, 90% of mine on the books are HDHP/HSA set-ups.

In my opinion, the employers are in the business of making a profit. A benefit plan is necessary to recruit and reward talent. Giving the savings back in the form of an HSA contribution is not necessary to accomplish the above.

 

[Small Town ND]

I am working/worked with several companies in the last few months, and I believe most of them would be a target for an HRA.

I gues the target group would be the local elevator, they currently have a plan with a $250. The elevator pays 100% of the premium, which currently has 25 enrollees.

They are in very good health, (this is a small town so everyone knows everything) but he mentioned how one of his employees is insulin dependent, and that was it as far as medical conditions go.


There are a couple other companies I would like to pitch it too and they are all in that 20-30 person group range.

 

[ABC]

25-30 lives an HRA could work.

I would look at a carrier that does all aspects of the plan for you. UHC or Anthem both have HRA's with no admin cost.

If the groups are as healthy as you think then it could be very successful.

 

[somarco]

They are in very good health, (this is a small town so everyone knows everything) but he mentioned how one of his employees is insulin dependent, and that was it as far as medical conditions go.

You have one decline already (IFP). Out of 25 folks roughly 70% will not get a standard offer from a carrier.

If you are talking about offering group health with an HRA then ignore this post.

 

[desiree]

I'm personally covered by an HRA. Mathematically, my out of pocket costs are the same for the year, and it's primarily from prescriptions. But, paying the full price of prescriptions until the deductible is met versus a $50/copay is painful ....

 

[Briefcaseboy]

HRA's can be used to pay premiums for eligible health care plans. Would be good, lets say, if the employer paid half of the premium and the employee paid half ( or some other formula ). That would be a good benefit to retain good employees.