Is HRA insurance enough?
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I have three different options from my employer: PPO 20, PP0 30 and HRA. Out of all these plans the HRA one is the cheapest. However, I do not understand why it is cheaper than the other two especially with the fact that the employer funds my account for health-care related costs. Or is HRA an electable addition to one of the other two plans and serves as some sort of employer-sponsored savings account for health costs? In other words can I just get HRA without either PPO20 or PPO30 and still expect similar coverage. (Waiting for a day when I can just go to a doctor without having to worry about how I'm gonna pay for it...)
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Answer:
An HRA offers certain advantages to both employers and employees. An employer can save tens of thousands of dollars annually by offering an HRA. Funds placed into employee HRA accounts, along with premium fees and employee reimbursements, are tax-deductible. HRA accounts force employees to be more discriminating with the way in which they use their health care funds, which helps employers to control costs. By choosing a high deductible health insurance plan, the employer is able to reduce premium payments and save money. The HRA is then established to cover the difference between the former deductible and the new high deductible amount. Ultimately, by coupling an HRA with a high deductible health insurance plan, employers are able to reduce their health care costs in a way which keeps employees happy and places no extra financial burden upon the employees. Employees benefit because they are able to enjoy the same level of health care coverage, without having to assume greater financial responsibility. They also have greater control with this system, and are able to use the health care services of their choosing, without the limitations associated with managed care programs. That being said, there is no shortcut here on Yahoo Answers you have to compare the alternative plan benefits side by side to decide what is the best option for you.
Dan at Yahoo! Answers Visit the source
Other answers
The Health Reimbursment Arrangement is usually, but not always, combined with an insurance policy. What that policy is will depend upon the employer. The employer has many options so nobody here will be able to help.
Zarnev
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