BENEFLEX Health Reimbursement Arrangements

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BENEFLEXHealth Reimbursement Arrangements

• An innovative alternative for reducing the high
  cost of medical insurance.

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The number one concern for business owners
providing employee benefits...

• Is the high cost of medical insurance.

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The HRA Strategy

• Combine affordable HIGH deductible medical
  insurance with a Health Reimbursement Arrangement
  (HRA).

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HRA Advantage

• HRAs are the newest way for employers to give
  their employees freedom of choice in healthcare
  planning while controlling their own costs.

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HRAs Reduce Insurance Premiums
Together, a HIGH deductible insurance plan and
an HRA can provide the perfect combination of
affordability, flexibility and security for
employers with groups who are willing to assume a
little more risk in exchange for significant
premium savings!
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HRAs Offer Enhancements Over Other Funding Methods

• HRAs enable you to use tax deductible
  dollars to reimburse your employees for qualified
  medical expenses.
• HRA funding can come from the premium savings
  from an expensive, benefit rich, low deductible
  health insurance plan to a low cost high
  deductible plan.

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Attractive to employees

• Your HRA contributions create a more attractive
  benefit package for employees who may object to a
  high deductible plan, because you are giving them
  money to pay for out-of-pocket expenses!
• HRAs permit the employee to accumulate money for
  future healthcare needs such as retirement
  healthcare expenses.

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Advantages for Employers

• You do not need to pre-fund the account
• You retain ownership of the funds if the employee
  terminates
• HRAs are available to any size group
• HRAs allow employers to offer a high deductible
  plan and allocate the savings to the HRA for
  future employee-directed healthcare.

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You Determine

• The amount to contribute to the HRA
• The amount that can be rolled over to the next
  year
• What happens to unused funds when an employee
  leaves
• The timetable for making your contributions

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Conditions

• An HRA may only reimburse qualifying medical
  and dental expenses (i.e., the diagnosis,
  prevention and/or treatment of disease, remedying
  a structure or function of the body, and certain
  related transportation expenses) and insurance
  premiums paid by an employee with after-tax
  income.

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Coverage

• The employer determines the coverage period
  and the limit on such reimbursements for each
  coverage period. The reimbursement limit need not
  be the same for each employee. Therefore, an
  employer may provide a higher reimbursement limit
  for an employee with a higher coinsurance payment
  (e.g., for one who selects family coverage under
  the company's medical plan).

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Retirees

• An HRA may cover both current and former
  employees(including retirees) and their spouses
  and tax dependents. The surviving spouse and
  dependents of a deceased employee may also be
  covered. Many employers have been interested in
  establishing defined contribution health plans as
  an alternative to or in conjunction with
  traditional retiree health care.

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COBRA

• An HRA is considered a "group health plan" for
  purposes of the health care continuation coverage
  requirements under COBRA. A participant electing
  COBRA coverage must be eligible to receive the
  maximum amount of reimbursement that was
  otherwise available at the time of the COBRA
  qualifying event.

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Now Is the Time

• Control your insurance expense with a HRA.
• Offer a high deductible plan and allocate the
  savings to the HRA for future employee-directed
  healthcare.

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BENEFLEX, INC.

• Helping You Help Your Business!
• 800-925-4087
• information_at_beneflexinc.com