Health Reimbursement

Arrangement

Level Funding

Self-Funding

Medical Management

Reference Based Pricing

Prescriptions

Find out how Metro Area Group Insurance Consultants can impact your health care benefits bottom-line through cost-savings and expense management.

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Strategies

 

 

Have you ever had the feeling you had a good year, no major claims, but still received a renewal increase from your insurance carrier?

 

Because insurance carriers don’t share any claims data with groups less than 100 employees, you have no way to knowing. You are in the dark.

 

A way to start pulling back the curtain, so you can begin to see what’s going on, is through a Health Reimbursement Arrangement, more commonly referred to as an HRA.

 

A Health Reimbursement Arrangement (HRA) is an IRS-approved, employer-funded medical reimbursement plan linked with a group health insurance plan. This allows employers to self-insure a portion of their group insurance plan using pre-tax dollars which leads to big savings without any change in coverage.

 

How does it work?

  • First, you would purchase a high deductible health plan, which has a lower premium. (For example, a $6,000 deductible health plan.

  • Second, you would establish a benefit plan for your employees. (For example, a $500 deductible plan.)

  • Third, with the premium savings generated from having a high deductible plan, you would fund the difference between the employee’s plan ($500) and the high deductible plan ($6,000).

 

Substantial savings would be realized, because employee utilization of the HRA tends to be 30-50%, depending on your plan design.

 

A third party administrator (TPA) would be used to process the reimbursements between the employee’s deductible and the high deductible plan. The TPA would provide reports showing the details of the claims processed. These reports can then be used to negotiate better renewal rates. Also, they can help determine if it would make sense to assume more risk through a level- or partially, self-funded plan.

Health Reimbursement Arrangement (HRA)

MAGIC Health Insurance Solutions

14-B E. Cherry  Street

PO Box 1130

Sunbury, OH

43074

(844) 800-MAGIC

(740) 965-3560

Strategies

 

 

 

Have you ever had the feeling you had a good year, no major claims, but still received a renewal increase from your insurance carrier?

 

Because insurance carriers don’t share any claims data with groups less than 100 employees, you have no way to knowing. You are in the dark.

 

A way to start pulling back the curtain, so you can begin to see what’s going on, is through a Health Reimbursement Arrangement, more commonly referred to as an HRA.

 

A Health Reimbursement Arrangement (HRA) is an IRS-approved, employer-funded medical reimbursement plan linked with a group health insurance plan. This allows employers to self-insure a portion of their group insurance plan using pre-tax dollars which leads to big savings without any change in coverage.

 

How does it work?

  • First, you would purchase a high deductible health plan, which has a lower premium. (For example, a $6,000 deductible health plan.)

  • Second, you would establish a benefit plan for your employees. (For example, a $500 deductible plan.)

  • Third, with the premium savings generated from having a high deductible plan, you would fund the difference between the employee’s plan ($500) and the high deductible plan ($6,000).

 

Substantial savings would be realized, because employee utilization of the HRA tends to be 30-50%, depending on your plan design.

 

A third party administrator (TPA) would be used to process the reimbursements between the employee’s deductible and the high deductible plan. The TPA would provide reports showing the details of the claims processed. These reports can then be used to negotiate better renewal rates. Also, they can help determine if it would make sense to assume more risk through a level- or partially, self-funded plan.

Health Reimbursement Arrangement (HRA)

Health Reimbursement

Arrangement

Level Funding

Self-Funding

Medical Management

Reference Based Pricing

Prescriptions

Find out how Metro Area Group Insurance Consultants can impact your health care benefits bottom-line through cost-savings and expense management.

Health Reimbursement Arrangement (HRA)

14-B E. Cherry  Street

PO Box 1130

Sunbury, OH

43074

(844) 800-MAGIC

(740) 965-3560

Health Reimbursement Arrangement (HRA)

Have you ever had the feeling you had a good year, no major claims, but still received a renewal increase from your insurance carrier?

 

Because insurance carriers don’t share any claims data with groups less than 100 employees, you have no way to knowing. You are in the dark.

 

A way to start pulling back the curtain, so you can begin to see what’s going on, is through a Health Reimbursement Arrangement, more commonly referred to as an HRA.

 

A Health Reimbursement Arrangement (HRA) is an IRS-approved, employer-funded medical reimbursement plan linked with a group health insurance plan. This allows employers to self-insure a portion of their group insurance plan using pre-tax dollars which leads to big savings without any change in coverage.

 

How does it work?

  • First, you would purchase a high deductible health plan, which has a lower premium. (For example, a $6,000 deductible health plan.)

  • Second, you would establish a benefit plan for your employees. (For example, a $500 deductible plan.)

  • Third, with the premium savings generated from having a high deductible plan, you would fund the difference between the employee’s plan ($500) and the high deductible plan ($6,000).

 

Substantial savings would be realized, because employee utilization of the HRA tends to be 30-50%, depending on your plan design.

 

A third party administrator (TPA) would be used to process the reimbursements between the employee’s deductible and the high deductible plan. The TPA would provide reports showing the details of the claims processed. These reports can then be used to negotiate better renewal rates. Also, they can help determine if it would make sense to assume more risk through a level- or partially, self-funded plan.

Employee Benefit Services

MAGIC Health Insurance Solutions

14-B E. Cherry  Street

PO Box 1130

Sunbury, OH 43074

(844) 800-MAGIC

(740) 965-3560