Employers around the country are reviewing their benefit options and preparing for Open Enrollment.

One of the most common questions we help our clients with is how to manage another increase in healthcare. This year is especially important because fluctuations in the economy and labor markets have put a spotlight on overall cost management. Many employers and their staff shout “Hurray for HSA Day” after only their first year with an HSA. They are that important to those with high health insurance costs.

So, how will HSAs, HRAs, and ICHRAs make a positive impact during this challenging time?

HSAs

are a perfect option to maximize any benefits offering.

Unlike pretax accounts where unspent monies need to be spent by the end of the year, HSA money grows over time having a direct and positive impact on employees’ lives when they use they coverage. And the best part is – HSAs offer numerous tax benefits including:

  • Tax-free contributions from payroll.
  • Tax-free for current and future year qualified medical expenses.
  • Tax-free funds for Medicare, long-term care premiums, and out-of-pocket long-term care costs in retirement.
  • Tax-free investment growth.
  • Legacy or retirement benefit to designated beneficiaries

ICHRAs

ensure employees and employers alike have a choice in healthcare.

Did you know ICHRA is a full benefits package, not just a contribution to individual insurance? ICHRA can fully replace a variety of legacy benefit options all on it’s own. Check out this ICHRA plan design we regularly use to help save money:

Employer: Technology Development

Enrolled: 35

Benefits offered with an ICHRA:

  • Single/ Family contribution for Full-time employees.
  • Out-of-pocket cost reimbursement for deductible costs.
  • HSA Contribution.
  • Dental / Vision FSA.
  • Dependent Care FSA.
  • Dental HRA.

All of their employees worked with an insurance professional to help them first understand their benefits, and then shop for coverage that worked within their budget and lifestyle.

HRAs

have long been used to manage annual increases.

A Traditional Health Reimbursement Arrangement can be as simple as choosing a higher deductible group health plan (typically meaning lowering premium) and offering a reimbursement toward all or a part of your employee’s deductible cost. With an average of 20% of employees utilizing their reimbursement benefits, this benefit strategy has stood the test of time against the continual increase of insurance premiums.

Did we mention that HRA’s can be directly integrated with certain HSA-qualified health plans?

Ask us how to save money on premium, payroll tax and out-of-pocket expenses, all from the palm of your hand!

Need a change?

If you or someone you know is struggling with increasing group premiums, contact Flyte today. We are experts in integrating HSAs with both ICHRAs and Traditional HRAs to maximize savings.

Ask us how the Flyte Mobile App combines all of your employee’s Health Accounts into one single user-friendly experience.

Contact Flyte Today

Have questions about HSAs?

Our seasoned experts are on standby, ready to assist you with your Health Savings Account questions.
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