REAL WORLD HRA BENEFIT STRATEGY
SMALL BUSINESS GET'S REAL WORLD HRA STRATEGY SESSION
THE PARADIGM SHIFT
Not too long ago employer groups offered their employees defined benefits, or pension plans and as baby boomers aged in the cost of maintaining those pension plans became very expensive. Companies were acturarily going bankrupt with the escalating cost. What happened next is the shift away from pension plans to defined contributions or 401k plans, and this is exactly what is taking place in the benefits industry, as cost becomes more prohibitive for employers the shift has begun toward Health Reimbursement Arrangement (HRA) plans.
IT'S NOT TRENDING, IT'S NOW THE NORM
In this segment, businesses and organizations will first hand questions from a small business owner regarding benefits and advantages of an Health Reimbursement Arrangement commonly referred to as an HRA. My team at Mid Michigan Health Insurance Advisors field these questions with real world answers to group alternative benefit plan option as well as a strategy session.
Small employer group consisting of approximately 10 employees, MMHIA have been contracted to manage the group for several years, and as cost has begun to escalate for the group, they are now ready to explore other alternatives to controlling cost while maintaining comprehensive coverage options.
WHAT'S COVERED IN THE SESSION
- Greater tax advantages over and above traditional group plans
- More customization options
- Less administration
- The process for employees, easy on-boarding
- No break in coverage if there is a break in employment
- The new provision American Rescue Plan Act saves more on individual plans
- Employers can offer a more robust benefit package on a budget.
- And much more
Optional, but highly
*Many employer groups are slow to adopt new concept in benefits, but as industry experts, we know that the future of group benefits is a dying model. The majority of employees in the future will own individual plans, that employers can still make a contribution towards.
This means that employer groups can obtain tax credits for their employees in the form of a subsidy and provide a contribution as well, employer groups under 50, should not bare the burden of a group plan, it makes sense to subsidize your benefit with funds that can be acquired for your employees through Healthcare Exchanges. This is a fixed cost option versus a variable cost with group.