Health Insurance Cincinnati: Consider a Health Reimbursement Agreement or “HRA” Plan

Health Insurance Cincinnati

Part Ten of a series of articles on health insurance in Cincinnati and Northern Kentucky.

“Ways to Lower Your Group Health Insurance Premiums FAST!”

Consider a Health Reimbursement Agreement or “HRA” plan. Companies can select a higher deductible plan, for example a $5000 deductible, and provide reimbursement for claims occuurring between $2500 and $5000. In this example, employees would only be responsible for the first $2500 in claims. There is a bit of a self-insurance risk, but if the actual claim experience falls the right way, your company can achieve some premium savings. Again, premiums are certain and claims are not (or, at least not as certain). If you think your group runs at a relatively low claim expense, an HRA plan might be just the ticket. There are a wide variety of ways that you can structure how much and at what levels your company reimburses employees for claims under the deductible.

HRA plans require plan documentation and plan administration which is available on fee basis.

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