Taking Care of Your People with an HRA


A full-service electronics manufacturer headquartered in NJ with over 200 employees on their healthcare plan when they were introduced to Precision Benefits Group.

We initially handled their dental and life insurance coverages, but after a few years they asked us to review their healthcare insurance coverages.


After reviewing their benefits situation, we recommended the company move to a consumer directed strategy that involved pairing a High Deductible Health Plan (HDHP) with health reimbursement arrangement (HRA).

In an HRA employers reimburse the employee up to 50% of their individual deductible. Any unused monies remained with the employer, creating a win-win strategy for both the employees and employer. We also negotiated an 18 month rate guarantee as they used to renew in June, but now they renew in January. Most rate guarantees are 12 months, 18 months is not common practice.


This strategy enabled them to save money and create an enhanced benefit for their employees. Changing the renewal date helped their financial/accounting team to better align with the company’s fiscal policy. Since we introduced medical consumerism into their workforce which in turn creates more favorable claims experience which results in more favorable renewals.