Affordable Small Business Health Insurance Plans Via Health Reimbursement Accounts
On one hand, employees would like to see their health care costs paid for "by the company" and on the other hand, the health care costs are running out of control. While the Affordable Health Care Act of 2010, if fully implemented, may someday reduce the overall costs, it will be years before its provisions will kick in fully.
So what is a small business to do now? We will show here that using Health Reimbursement Accounts or Health Reimbursement Arrangement plans will allow affordable small business health insurance to be implemented company wise, saving company money, and still satisfying the employees. Let's see how this works.
Company's perspective: Health Reimbursement Account allowing for affordable health insurance
If you as a small business are absolutely compelled to get rid of the money-sucking low-deductible, fully insured plan to significantly improve the bottom line, then transition to a HRA plan makes a lot of sense. You will save thousands of dollars annually per employee by switching to a high deductible plan. Some of these savings you can pour back into the HRA account, available to employees for their out-of-pocket health expenses.
Even better, the flexibility of determining what types of health expenses can be reimbursed, and the ability to collect back the unused funds at the end of the year, will add additionally to your bottom line after the transition to a HRA plan.
There are no limits on how much or how little funds are put into the account each year. Just change the HRA plan document, distribute the employee handouts, and your bottom line has been improved for the entire year ahead. It is just that simple.
Employee's perspective: Health Reimbursement Account allowing for flexible health spending
By using a high annual amount placed in the Health Reimbursement Account, employees will now have more choices when paying cash for their health expenses than they had previously when they were limited to their PPO or HMO networks of physicians, pharmacies, and auxilliary services.
Perhaps, by doing more thinking on their own, they will find better solutions for their health care needs.
Perhaps, they will find supplemental plans matching the provided HRA insurance plan to suit their specific needs. There are so many options available out there, both for supplemental insurance and supplemental non-insurance plans, such as discount dental and vision plans, discount pharmacy cards, discounted health club memberships, and more.
Greater flexibility and the limits on the funds available each year will require more participation on behalf of employees. However, it is clear that this is the price to pay for a company to remain competitive financially in the highly competitive national and international marketplace.
For more information on HRA plans, see site http://healthreimbursementaccount.org. Specifically, the section health reimbursement account insurance talks about health insurances suitable for use with HRA accounts.