Products & Services

HSA & HRA Programs

At Gibson Insurance Group, our Employee Benefits Division specializes in designing competitive, tailor-made programs that will provide you and your employees with the peace of mind that comes from the ability to maintain a lifestyle in the event of an accident or medical crisis. Using HSAs & HRAs as an overall strategy is one way to reduce your employee benefit costs. A savings of 25%-35% is common. The following information is a great place to begin a comparative of the programs.

HSA, or Health Savings Account, is a tax-exempt savings account, similar to an IRA, but created as an account to pay for medical expenses. These accounts are combined with a qualified, high-deductible health plan (HDHP). All expenses, including physician office visits and prescriptions are applied to the deductible of the HDHP before any benefits are paid. Concurrently the employer and the employee are putting money aside on a tax-free basis in the employee’s HSA to pay for medical expenses. The money in the HSA continues to grow year after year if not spent. The employee owns the HSA.

HRA, or Health Reimbursement Arrangement, is a tax-favored benefit aimed at lowering overall health plan costs while maintaining the health plan design currently in place. In order to reduce the premium, the employer purchases a plan with a high deductible and/or out-of-pocket limit. The employer makes a promise to reimburse each employee a set amount of their deductible and/or out-of-pocket limit using the premium savings from the prior plan to fund the reimbursement.

HSA

HRA