At The Minor Field Insurance Agency, we are committed to health insurance for both our commercial customers, who need group coverage for their employees, as well as the individual or family that needs coverage.
With the changing face of health insurance in today's market, we at The Minor Field Insurance Agency are staying abreast of the latest developments that will affect the coverage you expect as well as the cost impact upon you.
We have the best health insurance markets available in our area, and we will always present to our customers the best options at the best price available.
Health Reimbursement Arrangement (HRA)
A Health Reimbursement Arrangement is a tax-advantaged benefit that allows both employees and employers to save on the cost of healthcare.
HRA plans are employer-funded medical reimbursement plans. The employer sets aside a specific amount of pre-tax dollars for employees to pay for health care expenses on an annual basis. Based on the plan design, HRAs can generate significant savings in overall health benefits.
The primary requirements for an HRA are that (1) the plan must be funded solely by the employer and cannot be funded by salary reduction, and (2) the plan may only provide benefits for substantiated medical expenses.
HRAs may be designed in many fashions to suit the specific needs of the employer and employees. It is one of the most flexible types of employee benefit plans making it very attractive to most employers.
Health Savings Accounts (HSA)
An HSA is a form of health insurance coverage that includes two parts:
- A tax-exempt personal savings account to be used for qualified medical expenses.
- A health plan with a high deductible (e.g., $1,000 for an individual or $2,000 for a family).
Account funds are used to cover medical expenses before the plan
deductible has been met. Unspent account balances accumulate and accrue interest from year-to-year. Once the health plan’s annual deductible has been met, coverage resembles conventional insurance, typically in the form of a preferred provider organization (PPO) with little-to-no cost sharing for in-network services, and limits on total out-of-pocket costs.
An HSA account is much like an Individual Retirement Account (IRA), except that deposits and qualified withdrawals are tax-exempt. Individuals and their employers may deposit money into the HSA up to an annual dollar limit, with extra catch-up contributions allowed for those age 55 to 65. Account balances can be used to pay for a wide range of medical expenses — including some ordinarily not covered by insurance — as well as some insurance premiums. HSA funds also can be used to pay medical expenses of family members not covered by the high-deductible plan. After reaching age 65, you may use HSA funds to augment regular income by paying ordinary income tax on withdrawals for any non-medical expenses.
Like IRAs, HSA funds can be invested in stocks, bonds, and mutual funds. Since you own the account, it is fully portable regardless of any job changes.
