Many companies today are faced with a harsh reality, the need to cut costs in order to stay in business. Health insurance premiums have gotten very expensive, for many they are just too expensive. Every year they watch as their premiums increase by double digits. You know you have to do something to cut costs and what most employers are doing is cutting coverage or worse, getting rid of the group health plan altogether. There has to be a better way. There is! It's one of the best kept secrets and also one of the biggest tax give-aways that the government has. It's called the HRA.
Wouldn't you like to reduce employee and company costs by 30% - 40%?
You can do so by setting up an HRA ( Health Reimbursement Aggaingement ) for your company. An HRA is a tax favored health plan offered by the employer. As of 2006, a new tax legislation allows for an employer to reimburse 100% tax deductible dollars towards an employee's health insurance premiums by setting up an HRA. The dollars that the employer deposits into the HRA are tax-free to the employee. The employer has the option to reimburse all or part of the employees' health care premiums. If employer reimbursements are made, the employee is responsible to pay the balance which will be made on a pre-tax basis. This program includes individual health insurance policies from top rated national carriers. Below are some highlights of individual insurance:
Individual plans are priced lower than group plans which offers a savings to the employer and employee
The insurance plans can be customized to fit the needs and budget of each employee
The employee owns the policy and takes it with them if they change jobs or become unemployed
The plans can never be cancelled unless the premiums are not paid
The HRA program also eliminates the need for the employer to manage their employees' health benefits. This will give the company more time to concentrate on their core product lines.
An HRA maybe the way for your company to save on it's health insurance costs without sacrificing coverage. By switching from group coverage to individual coverage your company can save 30 - 40% on your premiums. Less cost and you still get the tax write off! Since the individual owns the policy and not the company there is are compliance issues, no management and no cobra to worry about. Your employees will have a choice of coverages that best suit them, not what best suits the companies budget.
Michael J. Ferro
President
Ferro Financial Services, Inc
http://www.ferrofinancialservices.com/
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