Small businesses like yours face two main hurdles when it comes to group plans: participation rates and cost. Historically, 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, group plans are unaffordable and cumbersome, and they force employees to choose the same type of plan, despite their unique needs and preferences. Let’s see how HRAs stack up as an alternative to group benefits.

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