HRA

A great new tool to reduce your health insurance cost is at your finger tips, it’s called an HRA. HRA stands for a Health Reimbursement Arrangement. An HRA gives the employer the opportunity to reimburse the employee for health related costs. The employer must follow these rules: they must have an HRA agreement in place, the HRA must define what health costs it will reimburse i.e. health insurance premiums, give the same dollar amount to all employees and manage the accounting for all qualified reimbursed receipts.

The employer can choose how often reimbursements occur from monthly to quarterly to semi annually. If you have a small business this accounting process can be managed internally but there are many service companies that can handle this process for you.

Some of the great benefits of having a Health Reimbursement Arrangement within your company are the following:

  1. It allows you to know how much health related costs are going to be, so you don’t need to worry about blowing your budget.
  2. Each employee chooses what health benefits that fit their needs.
  3. Premiums run from 10-30% less than a group rate.

It’s important that your health insurance agent understands the individual health insurance market and the products that are available since every employee will need to purchase their own insurance.

Total
0
Shares
Previous Article

The Nitty Gritty of Starting a Clothing Line

Next Article

What I Learned About Entrepreneurship From My Dog

Related Posts
supply chain
Read More

How to Keep Vendors and Clients Happy During Supply Chain Hiccups

Supply chain breakdowns are happening due to global disruptions, rising costs and increased consumer expectations. Businesses can't always stop supply chain hiccups, but they can learn from them and limit their impact on vendors and clients. How a business responds to a supply chain issue can have far-flung effects. A company that is proactive and...
implementing new systems
Read More

9 Mistakes to Avoid When Implementing New Systems

If your systems aren’t lean, efficient and precise, you’re wasting time and money while putting your business at unnecessary risk. If you’re going to build out new systems, you need to do it right. Avoid these nine mistakes when building new systems to transform how work gets done in your business. 1. Ignoring human nature...
Read More

How to Support Employee Mental Health and Avoid Startup Burnout

When it comes to finding the right job — and staying there — candidates are looking for a lot, especially in a virtual setting. Gone are the days where foosball tables and free snacks constituted benefits. Of course, we still love them, but there has to be more that matters. People are primarily looking to...
E&O insurance
Read More

Your Technology Company Needs E&O Insurance: Here’s Why

Every business has unique risks that can seriously harm its operations if not properly addressed. As a business utilizing technology to produce and deliver products or services, it’s important to recognize and take precautions against risks that your commercial general liability (CGL) coverage doesn’t include. Technology professional liability coverage, also referred to as tech errors...