Q: I would like to do a quick survey on whether or not anyone has experience with HRA's.
How have you set your particular plan up?
Do your employees enjoy this plan?
Pros?
Cons?
Answers to any of these questions would be appreciated as we are thinking of going this route given the expected increase to our current HMO/PPO Medical plans.
Responses:
1) I just completed open enrollment and our Aetna HMO/PPO went up 14% and Kaiser up 16%. Luckily all our other plans cost remained the same. Like you, I will need to reassess for next year which will likely be a higher co-pay plan with some benefit take-aways.
2) For 2010 plan year, we added a high deductible plan ($2,000 for single, $4,000 family) along with a health savings account (H.S.A.) and the premiums were substantially lower. We incentivized employees by having a company contribution (varied by single or family) to the H.S.A. to cover part of the deductible. The HDHP is a good option for those who use the plan a lot since it covers all medical at 100% after the deductible is met. We did not consider an H.R.A. though. We have Blue Shield and also an H.M.O. and a P.P.O. Call me if you want more information.
3) This will be year two for us on a fully consumer driven healthcare platform. We have both HRAs and H.S.A.s. Has been a very successful program for us and reduced costs both for the company and for employees dramatically. Employees were resistant at first due to the unknown but have mostly embraced it now. Key success factors in my opinion are to do a full replacement (employees won't elect it otherwise - too different) and lots and lots of clear education and communication. Lastly, it works best with a true wellness focus and supporting initiatives.
Responses:
1) I just completed open enrollment and our Aetna HMO/PPO went up 14% and Kaiser up 16%. Luckily all our other plans cost remained the same. Like you, I will need to reassess for next year which will likely be a higher co-pay plan with some benefit take-aways.
2) For 2010 plan year, we added a high deductible plan ($2,000 for single, $4,000 family) along with a health savings account (H.S.A.) and the premiums were substantially lower. We incentivized employees by having a company contribution (varied by single or family) to the H.S.A. to cover part of the deductible. The HDHP is a good option for those who use the plan a lot since it covers all medical at 100% after the deductible is met. We did not consider an H.R.A. though. We have Blue Shield and also an H.M.O. and a P.P.O. Call me if you want more information.
3) This will be year two for us on a fully consumer driven healthcare platform. We have both HRAs and H.S.A.s. Has been a very successful program for us and reduced costs both for the company and for employees dramatically. Employees were resistant at first due to the unknown but have mostly embraced it now. Key success factors in my opinion are to do a full replacement (employees won't elect it otherwise - too different) and lots and lots of clear education and communication. Lastly, it works best with a true wellness focus and supporting initiatives.
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