| With group health insurance rates
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| | extremely easy to set up and to manage.
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| continuing to rise, more small business
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| | The employer simply provides a fixed
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| owners in Colorado are turning to Health
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| | monthly tax-free contribution to an HRA
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| Reimbursement Arrangements (HRAs) as a
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| | for each participant. The Health
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| way to help their employees obtain health
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| | Reimbursement Arrangement then enables
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| insurance. With this type of arrangement,
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| | employees to obtain reimbursement for
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| the business reimburses employees for the
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| | qualifying medical expenses, including
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| cost of their individual health insurance
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| | health insurance premiums.
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| plans, instead of offering a group plan.
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| | Your employees can then select an
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| What Is an HRA?
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| | affordable plan customized to their own
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| A Health Reimbursement Arrangement (HRA)
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| | needs and budget. One great advantage to
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| is an arrangement where an employer
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| | the employee is that the coverage is
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| reimburses employees tax-free for
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| | totally portable - if they ever leave
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| qualified medical expenses, including
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| | their employer they can take the coverage
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| health insurance premiums. HRAs are also
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| | with them. They do not have to worry
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| known as Section 105 plans, named after
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| | about COBRA, or about being tied down to
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| the section in the U.S. Tax Code that
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| | their job just because they need the
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| governs them.
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| | health insurance.
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| Group health insurance in Colorado is
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| | These plans are primarily being adopted
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| "guaranteed issue," meaning that the
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| | by small companies with employees who are
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| insurance companies must accept any
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| | all in good health. Because insurance
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| applicant, regardless of pre-existing
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| | companies are allowed to "underwrite"
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| health conditions. As a result, group
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| | individual health insurance applications,
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| insurance premiums are about twice as
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| | someone with some pre-existing health
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| expensive as individual plans, and
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| | problems could be denied coverage.
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| approximately 40% of small business
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| | The average group health insurance
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| owners can no longer afford to offer
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| | premium for a family is nearly $14,000
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| health insurance to their employees.
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| | per year. However, the average premium
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| Companies cannot purchase individual
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| | of an individually underwritten plan can
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| health insurance for their employees, but
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| | be much less than $300 per month. So it
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| if they have an HRA set up they can
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| | is not surprising that as more small
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| reimburse them for their medical
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| | business owners learn how they can use an
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| expenses, including the cost of health
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| | HRA to reimburse individually
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| insurance. The reimbursement is
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| | underwritten health insurance plans,
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| considered a tax-free fringe benefit to
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| | their popularity continues to soar.
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| the employee, so it is a better value
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| | By Wiley Long - President, ColoHealth -
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| than simply receiving a pay increase.
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| | The state's leading independent health
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| Because some companies are now offering
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| | insurance agency specializing in Colorado
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| online HRA plan set up, they are also now
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| | health insurance plans.
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