Feature Article: The HSA Option for Small Business Health Care
Sunday October 17, 2004
Health care premiums will be facing the fifth year of double-digit growth while many small business owners prepare this year’s budget. A new approach enacted by Congress last year called HSA or health savings accounts, provides new avenues for reducing current healthcare costs. Learn how an HSA can benefit your small business. "The HSA Option for Small Business Health Care"
Comments
The HSA alternative is the HRA or Health Reimbursement Arrangement. HRA plans offer more premium savings and flexibility than the HSA. By purchasing a high deductible health plan the employer can fund a deductible gap HRA and use a portion of the premium savings to pay all or most of the new high deductible. This removes that burden from the employee. And the HRA benefit payments are a 100% business write-off. Another way to use the HRA is to formerly drop group health insurance and fund a Premium Reimbursement Arrangement HRA and purchase individual insurance at approximately a 50% savings over group insurance.