HSA for America Sees Rush to Enroll before the Dec. 31 Health Reimbursement Arrangements Deadline

Dec. 8, 2011 - PRLog -- HSA for America, the nation’s leading provider of Health Savings Accounts and HSA-qualified health insurance plans for individuals and families, is finding that record numbers of small employers are signing up for Health Reimbursement Arrangements.  Employers are using a HRA as a way to legitimately reimburse individual health insurance premiums to their employees, and they are saving 50 percent over group health insurance rates. This is a key element of HSA for America’s Complete Protection Strategy that is available at http://www.health--savings--accounts.com/The-HSA-for-America-Complete-Protection-Strategy.htm.

A HRA is a special employer-funded account that can be set up to reimburse specific medical expenses directly to employees. These arrangements arose from IRS Notice 2002-45 and Revenue Ruling 2002-41. Because individual health insurance premiums are much less expensive than group coverage, a HRA can allow small business employees to obtain much less expensive, permanent individual health insurance coverage that is not tied to employment.

“This is working best for small businesses where all employees and their family members can easily pass the health questionnaire that is part of applying for individual coverage,” says Wiley Long, the president of HSA for America. “The employer no longer has to worry about administering a group health insurance plan, and the employee no longer has to worry about losing her or his coverage with changes in employment.”
 
A HRA may be referred to as a Section 105 plan after the section in the U.S. Tax Code that governs these arrangements. The law allows the employer to establish the expenses, along with the annual caps, that will be reimbursed.  

Qualified expenses could include health insurance premiums and other out-of-pocket medical expenses. The reimbursement is considered to be a tax-free benefit for the employee.
 
Many small business employees are also setting up a Health Savings Account within their HRA.  “Health Savings Accounts are allowed with a HRA as long as the HRA does not reimburse expenses that would otherwise go toward the deductible of the HSA-qualified health insurance,” Long added. A HRA requires very little administration and is simple and inexpensive to establish. More HRA information and an online process to establish a HRA for this year are available at HSA for America’s Health Reimbursement Arrangements web page: http://www.health--savings--accounts.com/HRA.htm.

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About HSA for America:

As the nation's leading independent HSA expert, HSA for America has earned a reputation for providing superior educational resources for individuals, families and small businesses. With a comprehensive website at http://www.health--savings--accounts.com/, consumers can evaluate high-deductible health insurance plans that allow them to establish a HSA.

Guidelines for selecting a HSA administrator based on fees and investment options are readily available at http://www.health--savings--accounts.com/admins.htm. Topics to help consumers maximize their savings on premiums and taxes can be found at http://www.health--savings--accounts.com/how-to-guide.htm.

Consumers may access HSA for America’s instant quote engine and online applications or request individualized assistance. Confidential consultations regarding HSA Plans and Health Reimbursement Arrangements may be arranged by calling 1-866-749-2039 from 9 AM through 11 PM Eastern.