Healthcare Reimbursement Arrangements

Another Great Tax Favored Way to Manage Health Insurance!

EBA administers HRAs internally on a fee for service basis. In many instances these fees can be waived if the reimbursement schedule is limited to inpatient stays and outpatient surgeries. We do not outsource these services

HRA’s give the employer the ability to reimburse employees for out of pocket costs. Qualified reimbursements are tax free to the employee. Employer has no prefunding requirements and saves 100% of the money it did not spend. Or, if it elects a carryover provision, they can allow employees to allocate the unspent funds towards future Healthcare Reimbursements.

This is simply an employer “Promise to Pay” and EBA has a large number of clients taking advantage of these plans today. 100% OF THE CLIENTS USING THIS STRATEGY HAVE SAVED MONEY OFF THEIR RENEWAL!

Sample Healthcare Reimbursement Arrangement

In the following example, the group has received a 15% rate increase from their carrier. EGA bought a less expensive plan from their CURRENT insurance carrier and saved the company over $38,000.

The company then agreed to reimburse their employees for the difference between the new, higher hospital and surgical co-pays.

The company expects to pay out around $6,000 - $8,000 in reimbursements (24-32 incidents). Bottom line: Savings will be over $30,000 off the renewal.

Healthcare Reimbursement Arrangement:
ABC Company agrees to reimburse all employees and all their dependents for the following:
$250 of each Hospital Stay co-pay of $500
$250 for each Surgical co-pay of $500

Note: Employees are responsible for higher office visits and emergency room co-pays in this example. Companies can choose to reimburse employees for these items as well.

Download our Comparison of Flex Plans –vs- Healthcare Reimbursement Arrangements –vs- Health Savings Accounts

Click here to contact us about Healthcare Reimbursements

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