You could be saving 60% on group health insurance.

With expenses increasing every year, businesses need to get creative with how they think about health care. One cost-saving option is a health reimbursement arrangement (HRA).

HRAs are tax-favored, account-based, group health plans funded by employer contributions that reimburse eligible employees for medical care expenses. In 2019, to satisfy Affordable Care Act reforms, HRAs were allowed to be integrated with individual insurance policies, creating many more options for employers and employees.

Essentially, an HRA is a flexible, tax-advantaged offering that gives employers a tax credit for offering a group health plan and gives employees more authority over their health care choices. And it’s working! Nearly 80% of organizations signing up for HRAs are small businesses, and 1 in 6 employers surveyed stated that they were considering offering HRAs.