If you are an employer and have your own business, one of the things that you will constantly need to think about is keeping your employees happy and motivated in the environment. Among other things that you can do in order to achieve that goal, taking care of their health is high on the list of importance. Of course, I am not saying that you should hire all kinds of medical experts and have them on-site and ready if something happens. I am simply saying that you should think about getting a health reimbursement arrangement, which is thoroughly explained here.
In case you have just recently heard about this and you don’t exactly know what it is and how it works, here is what I suggest. Get properly informed as soon as possible, because this could be the perfect solution both for you and for your employees. Of course, I can understand your reluctance to get into any such arrangements before getting the information you need, which is why I have decided to answer some of the questions that you might actually have.
What Is An HRA?
Unsurprisingly, we are going to start with the most obvious and the most common question of them all. What exactly is a Health Reimbursement Arrangement, commonly known as HRA? Basically, this is a tax-advantaged health benefit that is used to reimburse employees for certain medical expenses. It is, of course, employer-funded and approved by the IRS. Keep in mind, though, that this is not the same as health insurance.
While health insurance covers certain specific things, an HRA is designed to cover most of those out-of-pocket payments that employees might face when it comes to medical expenses. Basically, employees buy the specific health care services that they require at a certain point and then the employers reimburse them for those services. There is, as you might have assumed it, a limit on the amount they can get reimbursed for.
This could help you get a better understanding of the whole idea: https://www.investopedia.com/terms/h/hra.asp
In addition to there being a limit on the amount of reimbursement, there are also certain restriction as to which services employees can get reimbursed for. Of course, these restrictions are set by employers, meaning that you can choose what your staff will get covered for. An HRA is often the best option for smaller businesses that cannot afford to offer group health insurance.
Plus, some people prefer it to traditional insurance due to the flexibility of the services you can get reimbursed for. The bottom line is that this could very well be the perfect option both for you as an employer, and for your staff. That is precisely what it has become a rather popular solution in recent years, and you might want to look into it too.
How To Set It Up?
Once you have learned enough about the HRA option, chances are that you will want to set it up as soon as possible. The only thing is, though, you might not know how to precisely do it. Well, I am here to help you out with that by letting you know about a few things you should do in order to set everything up the right way. So, it’s time for you to learn this.
First things first, you will need to find the perfect company that will make this entire process easier for you. If you take a quick look at Take Command Health, you will realize just how much simpler things can get if you find the right platform and let the professionals handle all the paperwork and all the other details of the process. That should be your step number on and I advise you to take all the time you need to complete it successfully.
After you have completed that step, you will need to think about the actual plan and the reimbursement options. Think about what you want your employees to get reimbursed for or get their opinions about it. Then, all that’s left for you to do is have the pros create the right plan, choose your starting date and sign the arrangement.