With health care premiums increasing across the board, many companies are looking for alternative options to decrease spending without losing employee coverage. Now employers have the option to maintain the quality of coverage for their employees and lower their costs by as much as 25% by taking preventive measures through Health Reimbursement Arrangements (HRA) (see also The Benefits Group).

An HRA is a government-based program created to encourage small businesses to provide benefits to their employees. HRA's are usually offered as part of a consumer-directed health plan, which provides employees with important new benefit options while raising consumer awareness of cost; which then empowers consumers with greater decision-making control over their health spending.

To contain the cost of insurance premiums, The Benefits Group focuses on creative plan design, switching to high deductible health plans (without lowering benefits to employees), which greatly lowers premiums. Due to a climate change in the health insurance industry and a double-digit increase in premiums, many companies have been forced to reduce benefits, shift more costs to employees or drop coverage entirely. "The consumer market has created a demand for affordability and plan options. The popularity of HRA plans are making this possible," says David Bommarito, President of The Benefits Group.


HRA's are open to employees employed by companies of all sizes, unlike some plans. The HRA contributions are an unfunded liability and are only paid if claims rise above a set point and are capped to a known liability and are free from state, federal and FICA taxes.

For example, Net Results Group, Inc., located in Southfield, Michigan, increased their deductible by $1,500. "The premium savings allows the company to fund the increase in deductibles on behalf of their employees without reducing their benefits and still save 18% on their health care budget," says Bommarito. With dental, we are typically able to save about 40% with comparable benefits.

Since 1986, The Benefits Group, located in Rochester Hills, Michigan, has been a full-service employee benefits company providing all aspects of employee benefits; group medical, dental, vision, short and long term disability, 401(k)'s, FSA's, EAP's and more. For more information about The Benefits Group, visit www.healthbrokers.com. For more information on this release contact Marco at Marco@MaverickMediaAgency.com