In the past, the main advantage of traditional, employer-sponsored group plans was that they were deductible expenses for employers and were taken out of employee paychecks on a pre-tax basis. These days, big group plans are simply unaffordable and cumbersome for many business owners to offer. Group plans also force everyone to choose the same type of plan, despite your employee’s different needs and preferences.
Health reimbursement arrangements might just be able to offer solutions to some of the most common pain points associated with group plans. Let’s look at some!