Health Reimbursement Account (HRA)
Which is more effective in changing consumer health behavior – a CDHP or traditional plan? How does each affect health outcomes and cost? We've spoken to many employers, of all sizes, and this is one of their main inquiries.
Through our research of large employers, we've found that a HRA delivers demonstrated savings over traditional PPO plans – with those enrolled in the CDHP being 12 - 20 percent healthier than their peers in traditional plans.
With our flexible plan designs and affordable cost options, the HRA maximizes the value of your health care dollars, all while encouraging your employees to become more engaged in managing health care spending.
As the employer:
- You determine fund management guidelines, including contribution amounts and carry-over opportunities.
- You define when funds in the HRA are available for reimbursement, and what types of medical expenses qualify for reimbursement.
- We offer a variety of HRA administration options to choose from. The types of HRA's provide of range of member cost sharing levels that can be designed to move members in their level of engagement.
- First Dollar HRA's allows immediate access of funds for employees.
- Split Deductible HRA's allow the funds in the HRA to be used only after the employee has paid a portion of their initial medical costs out of their own pocket
- Shared HRA allows the HRA to pay 50% of each claim submitted and the member shares the remaining 50% of each claim
- HRA with Retiree Savings is a packaged offering that incents members to spend their HRA wisely so remaining balances can be saved for future retirement medical expenses.
HRA lets your employees:
- Benefit from an employer-funded, employer-tax-advantaged health reimbursement account (HRA)
- Access coverage on services outside the scope of preventive care
- Share health coverage costs with the plan
- Get 100% coverage for in-network preventive care
- Choose from a variety of cost-effective health and wellness services
- Use our innovative phone- and web-based health management tools
In addition to a broad array of tools, knowledge and support, we proactively reach out to employees with valuable, personalized information. Our focused communications include:
- Targeted messages on health statements and our member Web site, highlighting opportunities to improve and maintain health, and information to manage the health care experience more easily.
- Health Coach outreach via Web or telephone to assist with chronic condition management for diabetes, asthma, and other diseases.
How the plan works
HRA plans help maximize the value of your health care dollar because they recognize the crucial fact that members who are required to "manage their own accounting" for health care services are likely to manage it more effectively.
But HRA plans are also user-friendly in ways that others often aren't. Members can see any network doctor without a referral and have access to a rich array of tools and resources designed to support healthier lifestyles. Plus, preventive care is covered up to 100%.
Employers and Employees will find that the HRA places a greater emphasis on personal responsibility and more informed decision making. Employees are in control with access to personalized health care plus decision support tools that help them use health care wisely.
Employers fund their employees' HRAs
Employees then use their HRA to pay for their health care expenses, including deductibles and coinsurance. Unused HRA funds can be carried over to the following plan year.