Trends in Employee Benefits –
More and more business are moving to medical plans with deductibles. Medical plans with deductibles generally provide lower premiums for the employer and employee. The challenge faced with a deductible plan is that employees have to burden a greater portion of the insurance costs. There are ways to help manage this by utilizing an outsourced HR Service provider like HR Knowledge, Inc.
A recent trend to help curtail the rising costs of health insurance is to increase the deductible, but to also implement a Health Reimbursement Arrangement (HRA). By doing so, the premiums are further reduced due to the higher deductibles, but the company “self insures” a portion of the deductible through a HRA. The HRA protects the employee as the company shares in the deductible expense. We are seeing premiums decrease by 10-20% when this strategy is implemented. After paying its portion of the HRA, a company will likely see savings of 5-10% while maintaining strong benefits.
As a licensed broker providing “Best in Class” benefits, HR Knowledge, Inc. can help your company contain costs, minimize risk, and relieve the HR administrative burden. For more comprehensive guidance on a HRA, contact HR Knowledge, Inc.at Sales@hrknowledge.com or call at 508-339-1300..