Looking for a way to control rising health care costs?

July 15 , 2008

With health care premiums rising at double digit rates, many employers have been forced to reduce benefits, shift more cost to employees or drop coverage completely. Employers rely on agents and brokers to identify ways to control these costs.

One option is to implement a High-Deductible Health Plan (HDHP), coupled with a Health Reimbursement Arrangement (HRA). Many employers have turned to HDHPs to help stem the tide of rising costs.

HRAs were developed in 2002 to fill gaps in coverage by reimbursing qualified medical expenses that are not covered by group health plans. With an HRA, employers fund the accounts, typically on a pay-as-you-go basis, and qualify for preferential tax treatment.

Employees can use the HRA with the added advantage of rolling over unused funds from one year to the next. It is a great help to HRA for expenses incurred before the group health plan’s deductible kicks in. With the opportunity to determine how and when their health care dollars are used, HRA participants have an incentive to become informed and value seeking health care consumers, resulting in decreased claims as well as a reduction in premiums for the employer.

An additional benefit of an HRA is that they can be used to fund individual premiums and in some cases even COBRA coverage.

An Infinisource HRA may be the perfect solution for employers looking to contain health care costs. Plus, by choosing Infinisource, your client will benefit from the same proven systems and procedures that have made us the leading benefit compliance administrator for over 20 years. For more information, contact our Sales team at 800-779-6384 or email us at solutions@infinisource.net.

In addition, we will be conducting a Webinar on September 24 that explores the full range of HRA options, just in time for employers’ 2009 plan designs. For more information, please visit the Seminars & Webinars page at www.infinisource.net.