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Small Business Employee Benefits and HR Blog

Why Health Insurance Brokers Need An HRA Administration Partner

The insurance industry is going through massive changes and employers are turning to health insurance brokers to provide them with answers. Regardless of the future of health care reform, here is an absolute truth about the health insurance industry: Most small business can no longer afford traditional group health insurance plans!hra health insurance broker partner resized 600

HRAs Are a New Alternative to Traditional Group Health Insurance

A Health Reimbursement Arrangement, or HRA, is an IRS approved, employer-funded, tax advantaged employer health benefit plan that reimburses employees for out of pocket medical expenses and individual health insurance premiums.

What Is An HRA Administration Partner?

The rules and regulations governing HRAs can be complicated. An HRA Administration Partner will help a health insurance broker focus on their main business - health insurance! Integration of the insurance broker's sales tools, customized marketing materials, and unlimited sales assistance are key components to a successful HRA Administration partnership. See HRA Administration - 15 Features To Expect From Your Provider.

How An HRA Administration Partner Can Help Health Insurance Brokers

An HRA Administration Partner can solve the following problems for group and individual health insurance brokers:

  1. Losing group health insurance clients due to cost or participation requirements 

  2. Needing more time to focus on your insurance business

  3. Needing solutions and tax-savings for clients not offering health benefits

  4. Wanting to sell more individual health insurance

  5. Losing revenue due to high deductible health plans and health care reform

7 Characteristics of a Good HRA Partner

1. A Good HRA Partner offers Group-based and Stand-alone HRA plans.

With a good HRA Partner, you should have access to both stand-alone and group-based HRAs, enabling you to cater to the specific needs of your clients. 

2. A Good HRA Partner gives brokers a single point of contact for HRA sales.

A good HRA Partner has a department of coordinators to provide a single point of contact for brokers, an account services team to work directly with your clients, and ongoing support for participants to ensure complete satisfaction for the life of the HRA.

3. A Good HRA Partner offers competitive commission structures.

A good HRA Partner should reward you with a compensation package via a broker-specific contract.  

4. With A Good HRA Partner, your clients are in full control.

With complete plan design flexibility, a good HRA Partner makes it easy - no matter which HRA plan design a client decides to use.

5. A Good HRA Partner should be a stable company with a great reputation and brand recognition.

The three most important attributes - Brand Recognition, Good Reputation and Stability - should be the top priorities when considering an HRA or defined contribution provider. A good HRA Partner is exemplary in all three.

6. A Good HRA Partner does not sell health insurance.

A good HRA Partner does not sell health insurance, and would never interfere with your insurance sales and support services.

7. With a Good HRA Partner, claims are processed quickly - usually within 1-4 hours.

Submiting a claim (i.e. reimbursement request) with a good HRA Partner is never 'wait and see'. Claims may be submitted online, by fax, or mail. All forms are easy to complete, with a quick 1-4 hour turnaround time when submitted online.