HRA (Health Reimbursement Arrangement)

At Castle Benefits we specialize in designing Health Reimbursement Arrangements (HRA) health plans.  Since about two-thirds of employees never use their benefits (or so little that it doesn’t matter) then why pay for a high end plan.

Instead, we purchase a lower end health plan “Plan B” than what the employees had with “Plan A”.  The employer then only pays for the actual claims incurred for the plan design that we previously had with “Plan A”. The end result was the same benefits and $61,806 per year in savings for a 14 employee company. The before and after benefits:

                                               Plan “A”           Plan “B”

Office Visit                    $10                    $10

Deductible                    $250                 $0

Max. out of Pocket   $2,500            $1,100

Same Insurance carrier and same doctors.