HealthSmart has extensive experience managing employer Health Reimbursement Accounts (HRAs). HRAs allow employers to allocate healthcare dollars annually for each enrolled employee. HRAs are one of the fastest growing healthcare insurance products being offered by employers today, because of the savings it provides employers and the flexibility it provides employees.
To assist employers in saving healthcare dollars, HRAs typically are limited to services covered under the employees healthcare plan. Employers have the choice to transfer unused account balances from year to year, giving employees more options to take care of future health needs.
By choosing a high deductible health insurance plan, the employer reduces premium payments and saves money. The HRA is then established to cover the difference between the former deductible and the new high deductible amount. Ultimately, by coupling an HRA with a high deductible health insurance plan, employers are able to reduce their healthcare costs in a way which keeps employees happy and places no extra financial burden upon the employees. Employers can save tremendously by offering HRAs because the funds, fees and reimbursements are tax-deductible. Employees enjoy the same level of healthcare coverage without assuming greater financial responsibility. They also have more control with HRAs, and use the healthcare services of their choosing, without the limitations of a managed care programs.