HRA plan information
originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email asktony@tonynovak.com.
Q: We are a start-up company in Texas with 4 employees but we expect to grow to 40-50 within the next year. Where can we get more information on a Health Reimbursement Account plan that will be suitable for us?
A: Results of a recent survey by Met Life shows that only 39% of employees are satisfied with their benefits and that the percentage is even lower (28%) for employees of small companies like yours. This is hardly useful as a recruiting tool. Using an HRA plan design in combination with good communications about employee benefit plans is considered to be the most cost-effective way to address this issue. Satisfaction should be stronger and this attractive health plan might then be a good tool for recruiting employees. Freedom Benefits (www.freedombenefits.org) offers a free HRA proposal on request that outlines many of the important considerations.
Summary
More resources:
Freedom Benefits HRA plan for small businesses