Our Products › Health Reimbursement Arrangement Plan
Start Managing Rising Health Care Costs
The first step in managing health care costs is helping your employees become smarter health care consumers. The single highest factor that contributes to determining health care consumption is the behavior of the employee. Smoking, drinking and lack of exercise all contribute toward higher health plan utilization
Insulating the employee from larger out–of–pocket costs merely compounds the problem. Low fixed copayments for many services make it an easy decision to see their doctor for any reason.
A Health Reimbursement Arrangement (HRA) along with a lower costing health plan like HMSA's CompMED offers a way to begin changing the spending habits of medical care. Although lower dues means higher out–of–pocket costs for some services, you can set aside funds in an HRA for your employees to help pay for some of their costs.
Once you decide how much to fund the HRA account, the employee will be able to choose when to use these funds for qualified health care expenses. A great advantage of the HRA is that unused funds can roll over to the next plan year. So, employees can “bank” these funds for future care. Employees now would make a conscious decision about when to use their health care dollars. Of course, employees should consult with their doctor to determine what type of care is needed.
For more information, call your HMSA Representative or Benefit Services of Hawaii at (808) 538–8900.
