As the costs of traditional health insurance plans continue to rise, Rhode Island business owners seek alternatives that prioritize their employees' well-being without breaking the bank.

The rising costs of traditional group health insurance plans are compelling business owners in Rhode Island to reassess their options. In Rhode Island, plans on the individual market can be found for  88% less than what they are priced at on the group market. For cost-conscious business owners, this price discrepancy has led to a noticeable surge in interest in group health options like the ICHRA or QSEHRA.

Several health insurance carriers in Rhode Island have gained trusted reputations for affordable yet comprehensive coverage. Carriers, such as Blue Cross Blue Shield of Rhode Island and Neighborhood Health Plan of Rhode Island, are rated 4-5 stars on customer satisfaction on Rhode Island’s insurance marketplace.

The high quality and variety of Rhode Island insurance carriers make the innovative solution of a Health Reimbursement Arrangement (HRA) an interesting option for business owners looking to provide employee benefits. An HRA allows employees to choose their own insurance plan from all available options and get reimbursed by their employers for their individual health insurance premiums. This is a game-changer considering the remarkable affordability and high quality of individual plans in Rhode Island.

The individual health insurance market in Rhode Island presents a golden opportunity for businesses to achieve significant cost savings. On average, individual plans in the state are a staggering 88% more affordable than traditional group plans. This substantial difference in cost opens the door for businesses to explore a more personalized and employee-centric approach to health coverage.

Liferaft, an HRA administrator, simplifies the process of implementing HRAs for Rhode Island businesses. Liferaft insurance experts thoroughly analyze your employee demographics, providing tailored recommendations through the state exchange. Factors such as age, family circumstances, and provider network quality are reviewed with each employee, empowering individuals to make informed decisions about their health coverage.

By implementing HRAs in Rhode Island, businesses offer employees the freedom to choose plans that align with their needs while realizing substantial cost savings. The structure of the HRA allows for the reimbursement of individual health insurance premiums, capitalizing on the significant affordability of individual plans in the state.

Choosing the right HRA is crucial for tailoring your employee benefits program to fit your business's needs. Liferaft offers a range of HRA options designed to accommodate different business sizes and preferences.

Individual Coverage HRA (ICHRA): Ideal for businesses of all sizes, this plan allows employers to reimburse employees for individual health insurance premiums and qualified medical expenses.

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

Standard HRA: Suited for businesses offering group health insurance, the Standard HRA helps cover healthcare-related costs outside of the insurance premium, like deductible expenses, mental health treatments, and more. The Standard HRA  requires employees to be enrolled in group health insurance through their company.

Expected Benefit HRA (EBHRA): Providing financial assistance for dental, vision, short-term insurance, and other health-related costs, the EBHRA is an excellent choice for employers supplementing traditional group health plans.

How can Individual Coverage Health Reimbursement Arrangements (ICHRAs) benefit my business?

ICHRAs empower businesses to reimburse employees for individual health insurance premiums, providing personalized coverage while potentially reducing overall costs. By offering a tailored approach to health benefits, ICHRAs enhance employee satisfaction and retention. Additionally, businesses leveraging ICHRAs may find increased flexibility in adapting to the diverse healthcare needs of their workforce, ultimately fostering a healthier and more engaged team.

Are individual health insurance plans a viable option for my business?

Individual health insurance plans are increasingly viable for businesses in Rhode Island, offering flexibility and potential cost savings for employers and employees. Embracing individual plans not only allows companies to cater to the unique healthcare needs of their workforce but also provides employees with the freedom to choose plans that align with their preferences. This adaptability can result in a more content and motivated workforce, positively impacting productivity and workplace morale.

Can businesses in Rhode Island offer both traditional group health plans and HRAs simultaneously?

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. 

What advantages do individual health insurance plans bring to employees and businesses?

Individual plans offer employees the freedom to choose personalized coverage while potentially reducing costs for businesses promoting satisfaction and financial well-being. Beyond the financial benefits, individual health insurance plans empower employees to take control of their healthcare, fostering a sense of autonomy and well-being. This, in turn, contributes to a positive workplace culture, enhancing employee loyalty and the business's overall success.

‍Are Health Reimbursement Arrangements (HRAs) available for larger businesses?

Yes, HRAs, including ICHRAs, can be utilized by businesses of varying sizes in Rhode Island, offering a flexible approach to health coverage. Larger businesses particularly stand to gain from the scalability of HRAs, as these arrangements can be customized to meet the specific needs of a diverse and extensive employee base. By implementing HRAs, larger businesses can optimize their healthcare benefits strategy, providing a competitive edge in attracting and retaining top talent while effectively managing healthcare costs.

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.