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With the skyrocketing cost of health insurance,
small business owners are looking for ways to reduce their health insurance
cots. Business owners now have the
option to set up Health Reimbursement Arrangements to do just that. Learn how to set-up and manage your company’s
HRA in order to lower your health insurance costs.

Small business owners can
now take advantage of Health Reimbursement Arrangements, or HRAs, as a way to cut
their health insurance expenses in half. As health insurance premiums
continue to grow, fewer small businesses are offering group coverage to their
employees. For small businesses with healthy employees, establishing HRAs
can be a great way to help their employees obtain permanent, portable
individual health insurance at a much lower cost than conventional group
coverage.

What
is a Health Reimbursement Arrangement?

A Health Reimbursement
Arrangement, or HRA, is simply an agreement by an employer to reimburse the
employee for their health insurance premiums and other specified medical
expenses. This is considered to be a tax-free fringe benefit for the
employee.

Because family and
individual health insurance plans are underwritten (meaning that the
insurance company has the option of excluding a condition or declining an
application all together), they are much less expensive than are group
plans. In fact, they typically cost less than half as much.

HRAs are also known as
Section 105 plans, named after the section in the U.S. Tax Code that governs
them.

How
, for good.