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New health reimbursement account (HRA) plan to help cut costs for fully insured groups, members

TULSA, OKLA. -- Higher annual deductibles have helped to keep health coverage premiums affordable for employers, but the resulting higher out-of-pocket costs for employees can be burdensome.

To help employees manage these costs, Blue Cross and Blue Shield of Oklahoma is working with employers to set up employer-funded health reimbursement accounts, or HRAs, for health plan members. Employers designate an HRA amount available to employees, which they can use to pay for eligible health care expenses they incur before they meet their annual deductible.

Any unused balance in an account rolls over to the next year, and is added to whatever annual contribution the employer designates for each covered employee.

“For an employee with a $2,000 annual deductible and a $1,000 HRA, the employer has, in effect, cut the employee’s eligible out-of-pocket costs in half,” said Lisa Putt, group vice president, marketing. 

“At the same time, the employer saves substantially on annual premiums for each covered employee. Employers fund their employees’ HRAs, but no actual money changes hands until employees use their HRAs. HRA funds that employees use are not taxable, and HRAs also give employers tax advantages.”

The HRA plans provide secured, online and up-to-date information specific to each participating member’s account.

“With the online features, members can follow more closely how their health care dollars are spent, and they’re more empowered to make their own health care decisions,” Putt said.

HRAs are available with any BlueChoice® PPO plan that has an annual deductible of $1,000 or more and no office visit copayment benefit. Eligible groups can choose from seven HRA levels for their group, ranging from $500 to $2,500.

Blue Cross and Blue Shield of Oklahoma is a member of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield Plans.