Employers Use HRA Plans to Reimburse Individual Health Insurance & Save 50% over Group Rates

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Employers all over the country are rushing to HRA Plans to reduce the high cost of providing health benefits to their employees. Historically January is when most employers establish a new HRA Plan year.

Core Documents, Inc., the nation's leading provider of Section 125 and HRA plan documents says that in 2002 the IRS issued Notice 2002-45 and Revenue Ruling 2002-41 that opened the door for employers to legitimately reimburse individual health insurance premiums to their employees. Individual health insurance premiums can be up to 50% less than group health insurance premiums.

Employers by the thousands are dropping group health insurance and establishing HRA plans to allow employees to go out and buy their own coverage.

This concept works best where all employees and their family members can easily pass the health questionnaire normally required to buy individual health insurance. For employees who have pre-existing conditions you may need to ask your health insurance agent to look into state sponsored guarantee issue health insurance.

The major benefit of the HRA concept to the employer is the ease of budgeting annual benefit expenditures. Prior to the HRA concept, employers were at the mercy of group health insurance carrier annual rate increases up to 20% a year.

Gene Ennis, CFC the President of Core Documents, Inc, says that employers can establish an HRA Plan for only $299 plus $15 shipping and handling. This provides the employer with everything they need to be compliant with the IRS and the Department of Labor. See a thorough description of this concept what you receive at: http://www.CoreHRA.com

Mr. Ennis also said that several states including Texas, Florida, Kentucky and Wisconsin have passed controversial rulings to disallow HRA Premium Reimbursement Arrangements in their jurisdictions. You should consult with your local insurance agent prior to establishing an HRA plan.

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GENE ENNIS, CFC
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