Small Businesses Can Afford Medical Insurance Using Health Reimbursement Account

On one hand, employees would like to see their health care costs paid for "by the company" and on the other hand, the health care costs are running out of control. While the Affordable Health Care Act of 2010, if fully implemented, may someday reduce the overall costs, it will be years before its provisions will kick in fully.

So what is a small business to do now? We will show here that using Health Reimbursement Accounts (HRA) or Health Reimbursement Arrangement (HRA) plans will allow affordable small business health insurance to be implemented company wise, saving company money, and still satisfying the employees. Let's see how this works.

Company's perspective: Health Reimbursement Account allowing for affordable health insurance

If you as a small business are absolutely compelled to get rid of the money-sucking low-deductible, fully insured plan to significantly improve the bottom line, then transition to a HRA plan makes a lot of sense. You will save thousands of dollars annually per employee by switching to a high deductible plan. Some of these savings you can pour back into the HRA account, available to employees for their out-of-pocket health expenses.