In recent years, the number of Americans participating in health savings accounts (HSAs) has increased dramatically. Within the last decade, HSA participation has jumped from 3.2 million in 2006 to 20.2 million in 2016. Health benefits experts believe these numbers will continue to rise as the current Republican administration seeks to expand HSAs as part of its efforts to replace Obamacare.
If you have workers spread across multiple states, you face unique challenges when it comes to providing your employees with health insurance. State-specific insurance requirements might make it difficult for you to cover all of your workers under a single plan. Fortunately, there are several ways to address this problem that may allow you to offer your employees the health coverage that they want.
This article is a summary of a section from our free resource, Small Business Health Insurance Reimbursement: Annual Report 2017. Download the full report by clicking here. In the face of rising health costs nationwide, reimbursement plans like health reimbursement arrangements (HRAs), by which businesses provide allowances to employees to reimburse their health expenses, are an increasingly popular alternative to group health insurance. How these plans are executed varies depending on several metrics, however, including geography and industry. One factor that’s likely contributing to the differences in health reimbursement popularity is the range of allowances among the states. These allowances are the dollar amount made available to employees for qualified reimbursements. In our 2017 Annual Report, we analyzed reimbursement plan allowances nationally, regionally, and state by state.
Health care costs are projected to increase by 6.5 percent in 2017, which means they will continue to expand more rapidly than inflation. As a rising number of businesses feel the pinch, many are abandoning traditional group health insurance in favor of alternatives like the Small Business Health Reimbursement Arrangement (HRA) to help manage their health insurance costs.
Recent health reform has left many businesses wondering if their health reimbursement plans for their employees are compliant with current laws. Today, we’re taking a look at three common mistakes businesses make regarding health reimbursements, as well as an easy, compliant way to make a health reimbursement arrangement (HRA) work for small business owners.
The following is an extract from our free eBook, The Comprehensive Guide to the Small Business HRA. Click here to download the full eBook, which will guide you through everything you need to know to start offering reimbursement benefits.
A common question among small business owners is whether they can offer employees a stipend to help pay for the cost of individual health insurance. Business owners also wonder if a health insurance stipend is a better choice compared to other options, such as a Health Reimbursement Arrangement (HRA) like the Small Business HRA.
Recent health-care reform initiatives, including the passage of the 21st Century Cures Act in December 2016, have ushered in significant changes that will affect the health insurance industry through 2017 and beyond. One of the new changes includes updates to Health Reimbursement Arrangements (HRAs), one of the best ways for small businesses to offer health benefits to their employees. Here are four things to know about HRAs and changes in health law for 2017.
IRS Publication 502, Medical and Dental Expenses, defines medical care for the purpose of deducting medical expenses and reimbursing medical expenses through programs such as HSAs and HRAs. Health Reimbursement Arrangements, or HRAs, are defined contribution plans through which employers can reimburse their employees for eligible medical expenses.
Disclaimer: The information provided on this website is general in nature and does not apply to any specific U.S. state except where noted. Health insurance regulations differ in each state. See a licensed agent for detailed information on your state. Zane Benefits, Inc. does not sell health insurance.