How To Help Employees Take Advantage Of Small Business HRA

How To Help Employees Take Advantage Of Small Business HRA

Once a business owner is ready to present the small business HRA to his employees, it is essential to explain the benefits of using it. They should understand that the change will not lower their health benefits, and will instead make them better. Below are some other things you should do.

Distribute A Customized Welcome Letter

Once everyone has been notified, it will next be necessary to personalize things. Distribute customized welcome letters to individual employees which contain detailed facts on how the health reimbursement arrangement works and the ways in which they will benefit. It is also a good idea to follow up the letters with meetings for each employee so that you can answer any questions they might have.

Use The HRA To Recruit New Talent

The health reimbursement arrangement can be an excellent way to recruit new workers. The reason for this is because studies indicate that employees in all demographics prioritize health insurance as their most important benefit. Not every new recruit will understand the HRA so it is essential to educate them on it and how it will help them, preferably in a brief letter that explains what it is.

Communicate Frequently And in Advance

Communicating with your employees regarding the HRA in advance is the best way to get them on board. Under no circumstances should you delay reaching out to them about this health benefit, and you should make effective use of brochures, presentations, meetings and emails. The more you put into this the better the results.

Assist The Employees In Getting Individual Policies

Employees who are used to group medical insurance may be intimidated at the idea of acquiring an individual plan. You can guide them through this transition by giving them access to resources that will help them select the best policy. However, it is important to remember that according to federal law it is not permissible for employers to influence the decision making of their employees regarding health benefits. While you can provide them with information, you cannot choose it for them.

Announce The HRA Companywide

Once you’re prepared to switch over to the health reimbursement arrangement, you will next need to announce it to everyone in your company. There are a lot of ways this can be done, but there are a number of key points that should be mentioned in the announcement. First, you should explain what an HRA is. Second, you should explain why the change is being made. Third, you should explain how it works, and how employees can purchase individual health plans. Finally, you should notify everyone as to the date in which the existing policy will be terminated, as well as the date when the HRA will begin.

In general, people dislike change unless it is an improvement they understand. Your job as an employer is to show them how the health reimbursement arrangement is an improvement and this is best accomplished through communicating frequently, early and clearly.