To offset that exposure (while preserving HSA eligibility), she reimburses 100% of claims from $1,501 to $6,350 through a Health Reimbursement Arrangement ($2,800 - $12,500/family). Nice.

Then, she contributes to everyone’s HSA; $750/single, $1500/family. Nicer.

Oh, and she pays 100% of the premium. Sweet.

Re-cap: employees maximum annual health care cost; $750/single, $1500/family. Incomparable!

But. (There’s always a but.)

Employees may be inconvenienced having to pay for prescriptions at the pharmacy and then self-reimburse (through the HSA or HRA).

Some are further bothered by the need to submit EOB’s to the HRA administrator and wait for reimbursement.

A vocal few using the plan miss their co-pays. I get it.

But consider. (Another but.)

Client’s current annualized total cost is $476,479 ($382,979 premium + $50K HRA + $43,500 HSA).

A $1500 HDHP eliminates the need for the HRA but costs $593,897 (exclusive of the $43,500 HSA contributions).

The premium for a $750 deductible plan with OV and Rx co-pays? $700,835!

It’s not so complicated after all. Want your co-pays back?

Then everyone pay the difference in premium.

Crickets.