In a time when employers are more budget conscious than ever, an HRA seems like a viable option. Given that HRAs come with few requirements, they provide a great deal more flexibility to employers than HSAs.
Because HRA funds do not belong to an employee, the employer retains any remaining HRA funds when an employee leaves the organization. Companies with high turnover find this to be a very favorable option.
Many employers find an HRA easier to manage. Because the employer is putting money in to the HRA, they are able to determine rules for the benefit plan. An employer has the flexibility to design a plan with a deductible that is not as high as you might see with an HSA-compatible plan. For example, if an employer wants to encourage employees to utilize high-value health care centers or have particular types of care covered at 100%, HRAs allow them to do so.
Wisconsin employers, contact a knowledgebroker to see if an HRA is right for your company.