Are you looking into offering health benefits and want to figure out an affordable solution? Or do you already offer benefits, and you’re looking into alternative options? In either case, a health reimbursement arrangement (HRA) may be a great fit for your organization.
In this article, we list the characteristics of the perfect HRA candidate. Read below to see if one of the groups applies to you and your business.
Employers looking to adopt health benefits
Many employers who decide to adopt an HRA do so because they are not currently offering health benefits. Some organizations offer their employees taxable stipends or wage increases in place of health benefits, but oftentimes, that extra money isn’t used as a health benefit and can often leave the organization out of compliance. If your organization is looking to adopt health benefits, an HRA might be right for you! See below if your organization is a good fit.
| Category | Characteristics |
| Employer Size |
Most employers have 2-100 full-time W-2 employees, with any mix of full-time and part-time employees. However, organizations of varied sizes can still qualify. |
| Organizational Challenges |
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| Common Industries |
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| HRA Options |
Organizations in many different industries have found an HRA to be a great solution for offering affordable benefits.
Employers seeking alternatives to group health
As group health becomes more expensive, many employers are looking for alternatives to group health. An HRA could be a great way to provide a more affordable solution for health benefits. Often, group health has a lot of strict participation and contribution requirements, whereas HRAs are much more flexible and customizable. Below are some quick facts about organizations like yours who are using HRAs after coming from group health.
| Category | Characteristics |
| Employer Size |
Most employers have more than 25+ full-time employees, however, employers of any size may still qualify. |
| Organizational Challenges |
|
| HRA Options |
Switching from group health to an HRA is a great opportunity to save on taxes and provide your employees with more options for the type of health coverage that works best for them. Avoid the participation and contribution rules of expensive group plans, and look at how an HRA could meet the needs of your organization’s employees.
To see how much offering an ICHRA would cost, get an instant quote!
Employers looking to supplement their high deductible health plan (HDHP)
As more employers look to HDHPs as their health benefit solution, there is a growing need for employees to find ways to get services covered. An HRA is a great way to provide employees with the flexibility to get reimbursed for health services they’re actually using in combination with their group coverage.
| Category | Characteristics |
| Employer size |
Most employers have more than 25+ full-time employees, however, employers of any size may still qualify. |
| Organizational Challenges |
|
| HRA Options |
Group coverage HRA (GCHRA) |
Conclusion
HRAs are a great fit for almost any organization, whether they currently provide group insurance or are just starting to look at health benefits options! Organizations in all industries and of all sizes can likely benefit from an HRA. If your organization fits into any of the above-described groups, we’d love to help you find a solution that works best for your needs.
If you’re trying to determine which plan may be best for your organization, click here to see a comprehensive comparison chart.
