What is the insurance, HRA?

Horizon MyWay HRA or HMO medical insurance?

• My company is changing insurance to an HRA account. Here are the highlights, Deductible is 2,500 a year and than 80% co-insurance with a max out of pocket of 10,000 a year. I have to pay about $340 a month for the plan which get's deducted from my paycheck. My wife has an BCBS HMO, It has a 4,000 deductible and a 5,000 out of pocket maximum. The plan costs about $240.00 a month which get's deducted from her paycheck. Co-Pay is $25.00 for a doctor and $50.00 for a specialist (need referral). So, I am a little confused about the HRA, do I have to pay the first 2,500 out of pocket? Does the monthly money that gets taken out of my pay check count towards that 2,500? We need to pick one plan and we are not sure which would be better. We are both in our 50's and do see Dr.s on a regular basis. Thank you.

• Answer:

  HRA's are employer funded accounts and you don't mention how much the employer is funding. If they are funding $2500 per year you won't have to pay that deductible. The $2500 is the deductible on the health insurance plan, which is the underlying policy and is not the HRA. This is what you are paying the monthly premium for because the HRA cannot be funded with your money. You need to talk with your HR department and get more information on the plan your company is getting before you make any decisions.