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Healthcare Reimbursement Arrangements

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Looking to help your employees get reimbursed for out-of-pocket medical expenses and individual health insurance premiums? Corporate Coverage’s Healthcare Reimbursement Arrangements can provide you with the tools and expertise to do so.

How can your company benefit from a Healthcare Reimbursement Arrangement (HRA)?

  • Employers can REDUCE Insurance Carrier Premiums and INCREASE Employee Benefits by self-funding a small portion of their employees claims.
  • Many employers choose a high deductible health plan (lower premiums) then design a plan to reimburse employees for a portion of their out-of-pocket expenses.

As an example – Employer purchases a $5,000 deductible health plan. Employer establishes a HRA plan to reimburse employees after they incur $1,000 in claims. In this case, employer may elect to fund up to $4,000 of the employee out-of-pocket medical expenses.

Benefits of this HRA

  • Employer pays less in insurance premiums than they would have if they purchased a $1,000 deductible plan.
  • Employer reimbursements to employees are tax deductible.
  • Employer ONLY pays for those employees who exceed $1,000 in eligible expenses so the employer doesn’t pay extra for insurance premiums for those who don’t use the plan.
  • Savings are kept by the employer – not the insurance company.
  • Employer selects underlying plan design of their choice.
  • Because this is a more cost effective way to fund claims (a combination of insurance company and employer funding) the employer’s budget can cover more benefits than it would otherwise.
  • Employees get an overall plan with better benefit – less out-of-pocket expense to them.
  • Reimbursements are not taxable income to the employee.

Corporate Coverage can help you design the plan(s) that best fit your budget and needs. Our aggregate reports will give employers ACTUAL claims payment history so they can review claims experience and decide what plan designs best suit their needs in future years. Our plans include employer customized websites for claims tracking and employee service forms.

Contact our benefit design specialist to discuss the cost saving options!