Pooled HRA

What is a Pooled HRA Arrangement?

Definition:

A “Pooled HRA Arrangement” or PHA is a process in which companies can share their out of pocket expenses that are not covered by their High Deductible health insurance plan.  Each individual member company of the PHA is responsible for obtaining and maintaining their own health insurance policy based on their company’s demographics and current health status.  The health insurance premiums of each individual member company of the PHA are not affected by their involvement in the PHA.

Purpose:

Obviously, small business owners are looking for any viable way to either lower or maintain their current expenses when it comes to health insurance and out of pocket expenses.  But often using methods commonly implemented by larger companies are just too risky for a smaller company.  A prime example would be the High Deductible HRA plan.  A small business would save a significant amount on their health insurance premiums by using this type of plan.  However, small companies do not purchase a High Deductible HRA plan because of the potential of paying more in out of pocket expenses than they would have with a traditional plan.  The creation of the PHA all but eliminates the chances of that happening.

Benefits of PHA:

By enrolling into the PHA program, small business owners will enjoy two benefits not commonly available to them in the past.  The first is the ability to lower their health insurance premiums and the ability to accurately budget for their out of pocket expenses.  The second benefit is the ability to see exactly where their out of pocket expenses are being spent.  This will allow a small business owner to directly address the issues that are driving up their health insurance and out of pocket expenses instead of guessing what is causing it. 

Next step if you are interested:

If this is a program that you would like to know more about then contact Mr. George J. Zacherl at either 724-360-5000 or gzacherl@zacherlinsurance.com.