Average health insurance costs continue to rise, and employers and employees are facing historically high premiums. According to Kaiser Family Foundation’s Employer Health Benefits Survey, premiums for family coverage were up 4% in 2021 to an average cost of $22,221. Of this total, employees pay almost $6,000 toward health insurance premiums each year.
With average health insurance costs rising, employers are looking at HRAs as employer-sponsored health insurance alternatives. HRAs enable employers to provide tax-efficient benefits without the stress of managing a traditional group plan. Plus, employees have the freedom to choose the plan they want and be reimbursed by an established amount set by the employer.