Press Release Summary: Sky rocketing health insurance premiums have everyone worried and when a chance comes up to save money, consider Health Reimbursement Arrangements (HRAs).
Press Release Body: Group coverage isn't as common as it once was, although it is still a viable option for many companies. For smaller companies with healthy employees, setting up HRAs allow workers to get permanent, portable individual health insurance for a lower cost than typical group coverage.
The HRAs, also called Section 105 plans for the section of the tax code they represent, are an agreement by the employer to pay the employee for their health insurance premiums and other stated medical expenses. It's a tax-free benefit for the worker.
When a worker has a qualified medical expense under the HRA, it's submitted to the employer for payment to them - up to the amount the employer has set on each worker. All the boss does is cut a check. It's a business expense and employees do not pay taxes on it.
Another smart tip to keep a workplace healthy is to also reimburse for the cost of stop smoking programs, annual physicals and even weight loss clinics. Benefits like this tend to keep employees a lot happier with their work place. Happy workers mean more productive ones.
There isn't a plan to manage with HRAs. The employer simply decides how much to pay back to the worker, whom to exclude from benefits (e.g. part time employees), then writes a check to cover the expenses. The transaction is done.
Setting up an HRA in the workplace isn't hard. Just hand out a Summary Plan Description to the people who are participating. It just outlines who is eligible, the benefit limits and when to apply for reimbursement. The limits of the plan are only subject to what the employer chooses to define them as.
Some classes of workers may be excluded, such as those who are new and haven't worked a certain amount of time, or must work a certain number of hours to get the benefits. There is a bit of record duplication in that a copy of the plan document needs to be kept on file.
HRAs are quite flexible and rapidly getting to be a very popular option for businesses in the 21st century.
To learn more visit: http://www.grouphealthflorida.com
Web Site: http://www.grouphealthflorida.com
Contact Details: 9280 Bay Plaza Blvd Suite 706 Tampa, FL 33619 1.813.600.3017
2022
