Businesses of all sizes continue to feel the pressure of the rise in health care costs. For many, a traditional group health insurance plan may become too expensive to offer their employees. Health Reimbursement Arrangements are one of the best options in offsetting the rising cost of health care and providing employees with a tax-advantaged benefits plan they deserve. The employer has complete control over the health benefits budget, and employees are free to make the purchases that fit their health care needs. More and more businesses are turning to Health Reimbursement Arrangements to keep costs down and in hiring and keeping talented employees.
Integrated with a company’s group health plan, the BASE® Integrated HRA can help combat the rising cost of providing health care. It is offered alongside an employer-sponsored group health plan (usually a high-deductible plan) as it is a supplement to help employees with their deductible costs, and is a great option for employers who are looking to lower the cost of health insurance premiums and save money while keeping the employee’s coverage the same. Employers can help their employees by reimbursing their out-of-pocket medical expenses not paid for by the group health plan. Because of employee utilization of the HRA, the employer can save 10-50%, depending on the plan design.
Randy M. is an insurance agent, and a great example of a Business Partner who has had success using BASE® with many clients. While not all clients are ready to believe that a third party administrator is able to reduce their health insurance expenses, Randy has introduced them to BASE® to discuss utilization history and higher deductible plan options. He has found great success in recommending a higher deductible plan in conjunction with a BASE® Integrated HRA, which has saved clients substantial premium dollars. “BASE® has allowed them to keep an attractive benefit plan while keeping their overall expenses reasonably the same,” said Randy.
Not only do Integrated HRAs contain health care costs for both the employer and employee, it helps keep employees healthier and better educated. According to a study by Employer Benefit Research Institute (EBRI), participants in both Consumer Driven Health Plans (CDHP) and traditional health insurance plans consistently report participants to have a better health status and on average have a lesser likelihood for smoking habits, obesity, and lack of exercise. Participants had consistently reported better health status, exhibited better health behavior, and understood the true cost of health care and how to spend their money wisely, than traditional plan enrollees without the CDHP in place.
The Integrated HRA helps to contain premium increases, which has only increased their popularity over the years. It helps employers and employees save money, stay educated on their health care decisions, and, on average, help to lead healthier lives. For more information, call BASE® at 1-888-386-9680 or check out our website.