Massachusetts businesses need help to provide quality health insurance to their employees while keeping costs in check. As the expenses associated with traditional group health plans continue to soar, many businesses are looking for more affordable alternatives. Massachusetts is witnessing a surge in businesses exploring individual health insurance plans, which boast a remarkable 61% cost advantage over the same plans on the group market.

Picking the right health insurance carrier in Massachusetts is a big decision; luckily, there are some great options to consider, such as Blue Cross Blue Shield of Massachusetts, Fallon Health, Tufts Health Plan, and United Healthcare. These carriers have 4-5 star customer ratings and are well-known for offering high-quality and comprehensive health insurance choices.

With Health Reimbursement Arrangements (HRAs), you can leave the decision of choosing the right carrier to your employees. Instead of selecting one group plan, employers can use HRAs to pay back their employees for their personal health insurance costs. This gives employees the freedom to pick plans that fit their needs, offering flexibility and often saving money on overall health insurance expenses.

In Massachusetts, businesses are seeing significant savings when moving from regular group plans to individual health plans with HRAs. Individual plans in Massachusetts cost 61% less than group plans, and they let employees customize their coverage based on what they need.

Liferaft, an HRA administrator, makes it easy for Massachusetts businesses to use HRAs. The Liferaft team looks closely at your employees and suggests personalized plans through the state exchange. They consider where people live, their age, family situation, and the quality of the provider network. With this info, employees can choose plans that match their needs.

Using HRAs in Massachusetts allows employees to choose the right coverage they want while saving money due to cheaper prices on the individual market. HRAs can pay back employees for their individual health insurance costs tax-free, taking advantage of the state's good rates for individual plans. This makes employees happy with expanded options and plan flexibility and helps the business's overall financial health. Many Massachusetts businesses can cover a greater percentage of their employees' insurance premiums when switching to the HRA from group health.

Choosing the right kind of HRA is crucial for tailoring your employee benefits program to fit the specific needs of your business. Liferaft offers different HRA options designed to cater to various business sizes and preferences.

Individual Coverage HRA (ICHRA): This versatile plan allows employers to reimburse employees for individual health insurance premiums and qualified medical expenses. Open to employers of all sizes, ICHRA requires employees to be covered by an individual health insurance plan or Medicare.

‍Qualified Small Employer HRA (QSEHRA): Tailored for small businesses with fewer than 50 full-time employees, QSEHRA permits employers to reimburse employees for individual health insurance premiums and qualified medical expenses.

‍Standard HRA: Also recognized as Group Coverage HRA, this plan complements group health insurance. Employees must enroll in group health insurance through their company to utilize the Standard HRA, and reimbursements can only be applied to qualified medical expenses, not premiums.

‍Expected Benefit HRA (EBHRA): Offering financial assistance for dental, vision, short-term insurance, and other health-related costs, EBHRA is an ideal choice for employers seeking to supplement their traditional group health plan with additional benefits.

How do HRAs benefit small businesses?

Small businesses can leverage HRAs, specifically the Qualified Small Employer HRA (QSEHRA) or the Individual Coverage HRA (ICHRA), to reimburse employees for individual health insurance premiums and qualified medical expenses, offering a cost-effective alternative to traditional group plans. The QSEHRA is an excellent option for businesses with less than 50 employees looking to provide benefits for the first time or if employers find group rates too expensive. The ICHRA is a great option for all sizes of employers. 

Can businesses offer additional benefits to traditional health coverage with HRAs?

Standard HRAs and EBHRAs can seamlessly integrate with existing group health insurance plans, providing a complementary and cost-effective enhancement. Employers can use these HRAs to supplement their current offerings, providing benefits for costs not covered by traditional group health. 

Are HRAs suitable for businesses of all sizes?

Absolutely. Whether you're a small business or a larger enterprise, various HRA options, such as the Individual Coverage HRA (ICHRA) and QSEHRA, are designed to cater to businesses' unique needs and preferences regardless of size.

Are there limitations on medical expenses that can be reimbursed through an HRA?

Generally, any qualified medical expense can be reimbursed through an HRA. Eligible expenses are defined by the IRS and your plan’s documents, including doctor visits, prescriptions, and specific medical treatments. Liferaft will guide employers on the qualified expenses to ensure compliance.

How does Liferaft streamline the HRA implementation process for businesses?

Liferaft facilitates the setup of HRAs by conducting a thorough analysis of employee demographics, providing tailored plan recommendations through the state exchange, and ensuring a smooth transition to individual health plans with potential cost savings.

Our team knows the ins and outs of the health insurance marketplace and will guide you towards the solution that make the most sense for your business and your team. Come with questions! Our experts are happy to dig into the details to get you the clarity you need.

During the call, Liferaft will run a cost-benefit analysis on your company's current healthcare spending and show you different ways you can save—without sacrificing plan quality. After your consult, Liferaft will design a unique plan for your employee's health insurance, including suggested plans and accounts, plan policy documents, and the annual budget.