BENEFLEX Health Reimbursement Arrangements

1. BENEFLEXHealth Reimbursement Arrangements An innovative alternative for reducing the high cost of medical insurance.

2. The number one concern for business owners providing employee benefits... Is the high cost of medical insurance.

3. The HRA Strategy Combine affordable HIGH deductible medical insurance with a Health Reimbursement Arrangement (HRA).

4. HRA Advantage HRAs are the newest way for employers to give their employees freedom of choice in healthcare planning while controlling their own costs.

5. HRAs Reduce Insurance Premiums Together, a HIGH deductible insurance plan and an HRA can provide the perfect combination of affordability, flexibility and security for employers with groups who are willing to assume a little more risk in exchange for significant premium savings!

6. HRAs Offer Enhancements Over Other Funding Methods HRAs enable you to use tax deductible dollars to reimburse your employees for qualified medical expenses. HRA funding can come from the premium savings from an expensive, benefit rich, low deductible health insurance plan to a low cost high deductible plan.

7. Attractive to employees Your HRA contributions create a more attractive benefit package for employees who may object to a high deductible plan, because you are giving them money to pay for out-of-pocket expenses! HRAs permit the employee to accumulate money for future healthcare needs such as retirement healthcare expenses.

8. Advantages for Employers • You do not need to pre-fund the account • You retain ownership of the funds if the employee terminates • HRAs are available to any size group • HRAs allow employers to offer a high deductible plan and allocate the savings to the HRA for future employee-directed healthcare.

9. You Determine • The amount to contribute to the HRA • The amount that can be rolled over to the next year • What happens to unused funds when an employee leaves • The timetable for making your contributions

10. Conditions An HRA may only reimburse qualifying medical and dental expenses (i.e., the diagnosis, prevention and/or treatment of disease, remedying a structure or function of the body, and certain related transportation expenses) and insurance premiums paid by an employee with after-tax income.

11. Coverage The employer determines the coverage period and the limit on such reimbursements for each coverage period. The reimbursement limit need not be the same for each employee. Therefore, an employer may provide a higher reimbursement limit for an employee with a higher coinsurance payment (e.g., for one who selects family coverage under the company's medical plan).

12. Retirees An HRA may cover both current and former employees(including retirees) and their spouses and tax dependents. The surviving spouse and dependents of a deceased employee may also be covered. Many employers have been interested in establishing defined contribution health plans as an alternative to or in conjunction with traditional retiree health care.

13. COBRA An HRA is considered a "group health plan" for purposes of the health care continuation coverage requirements under COBRA. A participant electing COBRA coverage must be eligible to receive the maximum amount of reimbursement that was otherwise available at the time of the COBRA qualifying event.

14. Now Is the Time • Control your insurance expense with a HRA. • Offer a high deductible plan and allocate the savings to the HRA for future employee-directed healthcare.

15. BENEFLEX, INC. Helping You Help Your Business! 800-925-4087 information@beneflexinc.com