Despite the government’s attempt to make healthcare more affordable, your company may still be concerned about the costs of providing adequate health insurance to your employees and might be looking into ways to lower the amount of their contribution. One solution is to continue with a group health plan, but shift more of the cost for these services to your employees.
Options vary for consumer direct health plans
Many of the consumer-driven health plans (CDHP) in Pennsylvania refer to third tier health insurance plans that allow members to use Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs), or similar medical payment products to pay routine health care expenses directly.
These, in combination with a high-deductible health plan (HDHP) protect them from catastrophic medical expenses. While high-deductible policies cost less, the user ends up paying routine medical claims using a pre-funded spending account (often with a special debit card provided by a bank or insurance plan).
There are many consumer-directed plans that are aimed to reduce patients’ use of medical services, particularly those that are unnecessary or of lesser value. Personal healthcare accounts can be associated with some CDHPs. HSAs are popular because they can be funded with pre-tax income, and the employer can also contribute to the account. Your employees own the accounts and the funds can travel with the worker to another job.
An HRA is funded by you, the employer, and therefore isn’t portable. There is also the option of providing a flexible savings account, which is like an HSA, but can be attached to a traditional group health plan, which some employees may prefer.
There are many ways in which you can design and fund employee healthcare, and consumer driven health plans in Pennsylvania can be complemented with voluntary healthcare products. An experienced agent can work with you to find the right combination for your needs.