HSA (health savings account) vs HRA (health reimbursement account)
There’s a clear winner in the popularity contest between health savings accounts and health reimbursement accounts. A couple of weeks ago, America’s Health Insurance Plans said that health plans that include health savings accounts continue to rise in popularity-with double-digit growth over last year.
More and more evidence is emerging to indicate that employees/consumers who choose a health savings account are more involved and take more responsibility in the management of their health insurance.
According to the Employee Benefit Research Institute, a recent survey reports that there were more HSA (health savings account) member employees actively participating in their plan decisions than the employees who were in HRA (health reimbursement plans). With more employees becoming personally involved in their benefit plans, many small to mid-sized employers are offering HSAs to their employees rather than HRAs according to a new survey by United Benefits Advisors.
HSAs have the ability to drive consumer behavior and keep costs low-while still remaining compliant with the maximum allowable out of pocket costs under PPACA.
A United Benefit Advisors survey found that on average that funding levels for plans with HSAs remained constant for individuals for both 2012 and 2013 with only a small increase for families of around $30 annually.
In addition to cost savings, The Employee Benefit Research Institute found that adults in an HSA were more likely than HRA members to do health-risk assessments, and participate in wellness programs that promote a healthy lifestyle.
With a growing trend towards HSAs, P&B Live is not only there to support the needs of employers of companies now offering HSAs, we are also there to bridge the gap and provide solutions to meet the needs of the more involved employees/consumers. In addition to being expert advisors in group benefits, we also offer customized online benefits enrollment technology to make benefits administration and benefits outsourcing effortless and effective, creating a culture of involvement for the more engaged employee.