Benefits of HRA
Benefits of HRA
Employees are always in search of new methods that will enable them to control their costs of health care while keeping the employees happy. The Health Reimbursement Arrangements are specifically designed to do that. Actually, HRA is a very flexible insurance product since it allows resources to be put in special accounts in order to reimburse workers for certain medical costs that they might incur.
1. Controls costs
By offering the HRA, an employer is capable of saving a lot of money annually. This is because, funds put in HRA accounts, together with employee reimbursements and premium fees are usually tax-deductible. This means that employees are going to be even more selective with how they make use of their medical care resources, which assists employers in controlling costs. If the HRA is used together with high deductible insurance program, then employers can lower their healthcare costs without placing additional financial burden on the employees.
2. Benefits employees
Employees greatly benefit from the HRA since they can now enjoy a high level of medical insurance without needing to take on greater financial accountability. In addition to that, employees have a better control using this particular system. They are allowed to select and use their own medical care services, which is a great contrast to managed care plans. Certain HRA providers offer consumers various online resources and tools that they can use to locate qualified doctors within their locality and make use of discounted healthcare services
3. Extensive cover
Most HRA programs assist consumers in covering all preventive health care costs without the need of filing additional paperwork once they have received their treatment. As a result of the upfront payment, consumers can easily and quickly get their desired treatment.
While HRA has several benefits, it also has some limitations. The key drawback of HRA is that people who are self-employed are not eligible for this plan.