HRA Archives

Engage Employees to Achieve Cost Savings and Better Health Outcomes

As employers plan their benefits programs for 2025, they face the daunting task of managing costs while ensuring high-quality healthcare options for their workforce. The annual premium average for employer-sponsored family coverage in 2023 was $23,968, with employees contributing an average of 27.4%, or $6,575, according to the KFF Employer Health Benefits Survey. However, access to healthcare is only the first step. Many employees struggle to navigate the complex healthcare system, often seeking medical services

Home » HRA

The Value of Consumer-Directed Healthcare Accounts

This infographic details the value of consumer-directed healthcare (CDH) accounts featuring HSAs, HRAs, and FSAs. What is a Consumer-Directed Healthcare Account? A consumer-directed healthcare (CDH) account is a type of medical savings account that: There are three primary types of CDH accounts: Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), and Flexible Spending Accounts (FSAs). HSAs The participant owns the HSA, which acts like a regular bank account. Money deposited into the account can be used

Home » HRA

The Rise of ICHRAs: A New Era in Health Benefit Solutions

With a growing emphasis on flexible, customized, and cost-efficient health benefit solutions, Individual Coverage Health Reimbursement Arrangements, commonly called ICHRAs, are gaining popularity. A new report by the HRA Council found that U.S. employers’ adoption of ICHRAs increased by 29% between 2023 and 2024. The Rise of ICHRAs ICHRAs debuted in 2020 as a significant departure from traditional group health plans. Instead of offering a uniform policy to all employees, these accounts enable companies to

Home » HRA

Designing Good Employee Benefits: 8 Questions You Should Ask

As we enter the last full month of summer, many employers are already working to develop their benefits programs for 2025. Creating a benefits plan that pleases everyone, especially in a diverse workforce, can seem impossible. To be successful, it is vital to identify which types of benefits various employee groups require. The secret to a successful scheme is asking the right questions that engage employees and meet their needs. What Are Targeted Questions? Employers

Home » HRA

How COBRA Interacts with ICHRA and HRA Plans

The Consolidated Omnibus Budget Reconciliation Act (COBRA) mandates employers to offer continuing health coverage to employees facing qualifying events such as job loss or reduction in work hours. However, navigating the interaction between COBRA and some reimbursement accounts, such as Individual Coverage Health Reimbursement Arrangements (ICHRAs) and Health Reimbursement Arrangements (HRAs), presents complexities. What are ICHRA and HRA plans? ICRHAs and HRAs are both exclusively funded by the employer and generally not taxable to the

Home » HRA

Demystifying Healthcare Costs: Employee Tips to Maximize Benefits and Save Money

Healthcare costs can be confusing, but with the right knowledge and strategies, just about everyone can navigate this complex landscape effectively. Below are some helpful tips for employees to maximize their benefits and save money in the process. Understanding Healthcare Costs Before diving into cost-saving tips, it’s essential to understand the various healthcare cost components. Healthcare expenses can include premiums, deductibles, copayments, coinsurance, and out-of-pocket maximums. Additionally, there may be other costs associated with prescription

Home » HRA

Non-Discrimination Testing

Offering employee health benefits is a great way to attract and retain talent, but companies must follow strict regulations to ensure fairness to all employees. The IRS monitors highly compensated employees’ eligibility and compares that to benefits available to lower compensation employees. All health plans must undergo annual non-discrimination testing. Learn more below. What is Non-Discrimination Testing? IRS rules state that self-insured health plans cannot discriminate in favor of Highly Compensated Employees (HCEs) concerning eligibility or benefits.

Home » HRA

Who Owns a Benefit Account?

Third-party administrators enable employers to offer benefits that help them attract and retain their valuable talent. However, employers do not own all benefit funds, nor do employees. These are essential questions when enrolling in benefits and spending down funds. So, let’s discuss who owns benefit accounts and ensure everyone fully understands the benefit account portability. What is portability? Benefits portability refers to the ownership of benefit account funds. If a particular type of benefits account

Home » HRA

Employer Benefits Nondiscrimination Testing

Employee health benefits can be an excellent way to attract and retain talent. However, companies must follow strict regulations to ensure fair treatment for all employees. The IRS monitors highly compensated employees and their eligibility, pre-tax contributions, or available benefits compared to lower compensation employees. For that reason, all health plans must undergo annual nondiscrimination testing. Learn more below. What is Nondiscrimination Testing? IRS rules state that self-insured health plans cannot discriminate in favor of Highly

Home » HRA

BenefitsPRO Features DataPath CMO on 2024 Benefit Plans

In 2024, perceived coverage gaps, flexibility, and affordability receive more attention as companies weigh prioritizing value versus shifting costs. November 27, 2023 By Bo Armstrong Originally posted on BenefitsPRO.com For 2024, brokers and TPAs will be well served to focus strongly on options that add significant value. In its recently released Survey on Health and Benefits Strategies for 2024, Mercer cited three key themes emerging from conversations with leadership from more than 700 organizations of varying

Home » HRA

+ More