 |
||
   |
||
Groups
|
Information Request |
|
|
Small Business Health Insurance
Health Reimbursement Accounts What Does Health Reimbursement Account - HRA Mean? Employer-funded plans that reimburse employees for incurred medical expenses that are not covered by the company's standard insurance plan. Because the employer funds the plan, any distributions are considered tax deductible (to the employer). Reimbursement dollars received by the employee are generally tax free. The downside to HRAs is that companies may choose whether to start or fund such a plan. Also, if a plan has already been established, the employer has the right to cancel it at virtually any time. As a benefit, an employee may be reimbursed for qualified medical expenses from his or her employer. The funds received are tax-free, but because the plan is employer funded, the employer has the right to cancel or alter the distributions at any time. In spite of this, many employees consider HRAs as a valuable benefit given the rising cost of health care Consumer-driven health plans are rapidly becoming a standard benefit offering in employee benefit packages. With soaring health care costs, stretched employer benefit budgets and employee need for control and flexibility in benefit spending, consumer-driven health plans are the right solution at the right time. Typically, a consumer-driven health plan combines a higher deductible health plan with a consumer directed plan such as a Health Reimbursement Account HRA). Health Reimbursement Accounts (HRAs) have become the cornerstone for many consumer-driven health plans. HRAs, often referred to as Medical Reimbursement Accounts, combine the control and cost-saving tools employers are seeking with the flexibility and protection employees need. With an HRA, employers fund individual reimbursement accounts for their employees and define what those funds can be used for, as narrowly defined as one expense type, such as a primary care office visit, or as broad a definition as all qualified medical expenses. Higher Deductible, Higher Co-pay Health Plans can result in substantial reductions in insurance premiums by shifting from first dollar coverage. Many employers use the premium dollars saved from a benefits downgrade to contribute to an employees’ account making the change cost-neutral or even possibly providing a savings to both the employer and the employee. A Health Reimbursement Account has become a popular strategy for companies that seek to provide their employees with a broad range of benefits and control without raising costs or increasing out-of-pocket exposure. Health Saving Account As healthcare costs skyrocket, you may be struggling with how to offer a competitive healthcare benefits package without increasing expenses. A HSA (Health Savings Account) combined with an HDHP (High Deductible Health Plan) helps employees save tax-deferred for current qualified healthcare expenses and allows them to carry over a balance for health-related qualified expenses in the future. You can also begin to curb your premium increases year-over-year by offering a benefit designed to create longer-term changes in healthcare consumption and expenses. Dental Insurance Dental insurance is intended to help offset the costs associated with dental care. The mere thought of out-of-pocket expenses prevents many Americans from receiving routine and necessary dental treatment. Today's dental treatments range in cost from $300 per year for regular dental hygiene visits, to $25,000 or more for restorative dental procedures or cosmetic dentistry. Additionally, when compared with medical insurance coverage, dental insurance plans generally offer fewer benefits. Dental Insurance Plans: What’s Available? Various dental insurance plans are available for individuals in the U.S. and are designed to help offset the costs associated with necessary dental care. Plans have limitations on the number of dental visits, radiographs (X-rays) and treatments that are covered, and other services may be excluded. Some plans only reimburse patients when the least expensive treatment alternative is selected; other plans do not provide coverage for necessary treatments of pre-existing conditions. You may not be aware that you have flexible spending account options available through your employer for dental or medical needs. Check with your employer to see if a flexible spending account is an option for you. The types of dental insurance plans available include the following: Dental Insurance Plan Choices:
What’s Covered by Dental Insurance? If you have dental insurance, familiarize yourself with your plan so you know what is covered and how. For example, if you require a dental filling and would prefer a composite material, evaluate the benefits allocated in your plan for composite fillings. Many insurance companies will only reimburse composite filling costs at a rate equal to that of an amalgam filling. You would be required to pay the remaining balance as an out-of-pocket expense. Cosmetic dental procedures are not typically covered by dental insurance. However, if you have insurance and require veneers for restorative purposes, ask your dentist about the possibility of filing for reimbursement for a percentage of the costs. Also, if you are undergoing a smile makeover that will involve multiple necessary treatments as prerequisites (e.g., root canals or orthodontic bite adjustments), some of those costs may be covered by insurance. More often than not, the cost of cosmetic dentistry will not be offset by insurance. It is important to ask the dentist's finance manager about dental treatment costs prior to agreeing to and receiving treatment. Dental insurance plans differ in the level of reimbursement offered for certain procedures and in annual dental spending caps. Some plans limit the waiting period before certain dental treatments are rendered. Additionally, plans typically have exclusions, meaning that costs for certain dental procedures will not be reimbursed. Dental finance managers can call your insurance provider to pre-determine the out-of-pocket costs associated with your planned procedure. Usual, Customary, and Reasonable (UCR) Fees The most common term used by dental insurance companies on their Explanation of Benefits (EOB) statement to identify the fee for dental treatment is called Usual, Customary and Reasonable (UCR). UCR fees are determined by insurance providers based on the typical costs associated with various dental procedures. For example, if your procedure costs $90, your dental insurance provider may have a UCR for the procedure of $60. You would therefore be responsible for paying the $30 difference as an out-of-pocket expense. Term Life Insurance Whether your term life insurance need is short term or long term, temporary or permanent, meant as an investment, or a retirement vehicle. We will give you the right information and the most appropriate quotes instantly. We will explain, compare features, compare rates on your term life insurance, and also help you determine the right type of insurance that matches your situation. We'll obtain the best possible life insurance rates for your circumstances.
|
|
© 2015 Foster Finanacial Services, Inc. | Powered by Foster Finanacial Services |
|