HSA/HRA & Useful Links

Useful Links

Small Employer Heathcare Reform News
HSA Bank
United States Department of Treasury: About HSAs
Timeline of Health Insurance Reforms, April 1, 2010
U.S. Departments of Health and Human Services, Labor, and Treasury Issue Regulationon “Grandfathered” Health Plans under the Affordable Care Act

Health Savings Account (HSA)

In this example of an HSA plan the premium is reduced significantly because all front-end benefits – doctor co-pays and prescription co-pays – have been removed.

• With the savings in premium, the employer is able to fully fund each HSA.
• The health plan pays 100% for all in-network procedures.
• Any money left in the account at the end of the year is allowed to build.
• The above example shows a 100% fully paid insurance plan and the company still saved $39,556.28.
• HSA’s do not have to be funded by the employer, however we recommend using some of the savings to subsidize the HSA accounts.

Health Reimbursement Arrangement (HRA)

In this example of an HRA the current plan is changed to a $1,000 deductible for individuals and $2,000 deductible for families.

• The higher deductible reduces the annual premium.
• The doctor visit and prescription options remained the same.
• The deductible is reimbursed 100% with the savings in the premium.
• Even if all employees use all the deductible, there is still an $18,356 savings.
• This example still has the doctor and pharmacy co-pay in place making it easy for the employees to grasp.
• We just simply set up the HSA to cover the deductible.