Supplementing HMO co-pays/deductibles
CJinNM
21 Posts
Hi - I'm new to the forum. HR Manager in NM. I'm looking at raising out/inpatient hospitalization co-pays to help reduce premium costs. I'd like to design a plan where we agree to cover up to $500 per covered person for in/out patient co-pays per year. Has anyone done anything like this and does it have to be part of a formal plan?
Comments
FSA's - Flexible Spending Accounts.
HRA - Health Reimbursement Arrangement.
HSA - Health Savings Account
The latter two are ordinarily coupled with a high deductible health insurance plan, but do not have to be.
The FSA is a part of our Section 125 Cafeteria plan - it is employee funded.
You will need to research details to determine if any of these will work for you and if so, which one will fit your company best.
The benefit of the HRA is it does not travel with the employee and only needs to be funded if and when the need arises. It is hard to tell from the information given so far, but the HRA may be a better fit for you. Discuss it with your insurance broker or the Third Party Administrator (if you have one) of your FSA - they can probably tell you all you need to know and probably would be a good bet for administering whatever plan you choose.