What Is HRA Health Insurance Plan?
HRA health insurance plan is a medical insurance plan that accompanies a company-established and owned Health Reimbursement Account or HRA account. Compared with the HSA plans, or Health Savings Account plans, HRA plans, or Health Reimbursement Arrangement plans have no requirement of purchasing a high deductible health insurance. In fact, the HRA plans, having no limits on contributions, can work without any insurance, can work with high deductible insurance plans, and with fully-insured plans as well.
Transitioning to HRA from a traditional full coverage health insurance plan
The matter of fact, however, is that most companies nowadays are transitioning into HRA plans from fully-insured plans. In such cases, a generous HRA plan can surely cushion the blow that a large increase in the deductible could cause the unsuspecting employees.
Given the extreme flexibility of the HRA plan, it is a great money saving yet gentle strategy to replace an expensive full-coverage health insurance plan with a medium-deductible health plan combined with a modest HRA plan, and then each consecutive year rise the HRA plan contribution, and up the HRA medical insurance plan deductible.
Doing so, the company can lower their health coverage expenses, and the employees can experience better coverage of their medical needs, a win-win situation despite the rising costs of health care services.
Transitioning to HRA from a HDHP health insurance plan
Alternatively, for self-employed or small businesses who currently have a HDHP, high deductible health plan, as the business grows, getting a HRA plan can be financially advantageous over lowering the insurance deductible.
For large companies, again, offering a choice of insurances to satisfy the many needs of different employees might be more difficult to do than to offer cash in health reimbursement accounts. Due to the broad range of health reimbursement account eligible expenses, offering HRA accounts can be a great self-insured plan.
Finding HRA insurance and HRA banks
How can you go about finding medical, dental or health insurance compatible with HRA plans? For a selection of individual and group health insurances that can be purchased online, see page find HRA health insurance plans. Finally, to find out about the banks offering HRA accounts, continue to Health Reimbursement Accounts Banks.