Stand-Alone HRA: Employee Benefits
According to Zane Benefits’ website, in addition to being a cost-effective and viable small business health insurance alternative, employees value these three main benefits of a Stand-Alone HRA.
#1: Employee Choice & Flexibility
With a Stand-Alone HRA, employees choose how to spend their HRA allowance and they have full flexibility in how to spend their HRA allowance. Employees select their own individual or family health insurance policy that best fits their needs. They choose from any carrier and any type of plan. Often times, a company uses an insurance professional of their choice to help employees select these individual policies.
For example, if an employee doesn't use their full HRA allowance on their insurance premium, they can choose how to use the remainder of their allowance (on other eligible medical expenses such as co-pays, prescriptions, vision, dental, etc).
#2: Employee Tax Subsidies Starting in 2014
With the implementation of health care reform, most employees will have access to significant tax subsidies through the health insurance marketplace. If the employee is eligible for a tax credit, the cost of their health insurance will be capped at 2% - 9.5% of their household income. An employee is eligible if their household income is less than 400% above the federal poverty line (that’s $94,200 per year for a family of 4 in 2013).
This will make the cost of individual health insurance premiums affordable (and guaranteed issued) for the majority of employees, and make the compan
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