What Is An HRA?

What Is An HRA?

HRAs (Health Reimbursement Arrangements) allow employers to:

   · Control and define your dollar contributions to your healthcare plan

   · Retain current health care provider, co-pays and maximum out-of-pocket expenses

   · Choose a high deductible insurance plan and dramatically reduce your premiums

   · Commit a defined dollar contribution for each employee’s healthcare expenses

   · Allow a portion of unused employer’s contribution to be carried forward for employee’s future year’s medical expenses

   · Allow a portion of unused employer’s contribution to be used for employee’s retirement medical costs

   · Make employees responsible consumers of healthcare

   · Switch to an HRA anytime, not just at anniversary

HRAs allow employees to:

   · Roll over unused employer contributions from one year to the next, unlike FSAs

   · Accumulate money for future healthcare needs

   · Have freedom of choice of when and where they spend their healthcare dollars

More than 40 MMMA members are already benefiting from HRAs, drastically reducing their insurance premiums with savings over $2.6 million, while still giving employees the level of benefits they are accustomed to.  Following are examples of MMMA members who have reduced their insurance premiums since putting in HRAs:


Employees(Industry) Premium before HRA Premium after HRA Insurance Premium
Savings *
22(distibutor) $84,000 $49,000 35,000
38(law firm) $251,000 $144,600 $106,400
45(construction) $274,600 $180,300 $94,300
75(securities) $357,000 $268,000 $89,000
*Premium Savings may be used to fund employer contributions to an HRA.

Please contact Sheelah at the MMMA office , 636-537-1360 or (800) 467-MMMA (6662), or by email to Sheelah@mmma.org to learn how this new benefit plan can lower and control your health care costs.

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