Maximizing Your Church’s Health Benefits: The Case for Implementing an HRA
Understanding the Importance of Health Benefits for Your Church
Providing health benefits to your church employees is not only a way to show that you care about their health, but it’s also a way to attract and retain employees.
According to a study by the Kaiser Family Foundation, 56% of Americans receive health insurance through their employer. This means that health benefits are a significant factor in a person’s decision to join or stay with an organization. By offering health benefits, your church can become more attractive to potential employees and retain current staff.
The Benefits of Implementing a Health Reimbursement Arrangement (HRA)
One way to provide health benefits to your church staff is through a Health Reimbursement Arrangement (HRA). An HRA is a tax-advantaged benefit that allows employers to reimburse employees for qualified medical expenses. This can include expenses such as deductibles, copays, and prescriptions.
There are several benefits to implementing an HRA for your church. First, it allows you to provide health benefits without the high cost of traditional health insurance. With an HRA, you only pay for the medical expenses that your members incur, rather than a set premium each month.
Second, an HRA is flexible. You can customize the plan to fit the needs of your church and its staff. For example, you can set a maximum reimbursement amount per year or per employee, or you can choose to only reimburse certain types of medical expenses.
Finally, an HRA is easy to administer. You can use a third-party administrator to handle the paperwork and reimbursements, freeing up your time to focus on other aspects of your church.
How to Set Up an HRA for Your Church
Setting up an HRA for your church is a relatively simple process. First, you’ll need to choose a third-party administrator to handle the plan like the company PeopleKeep. There are several companies that specialize in HRA administration, so be sure to do your research and choose one that fits your needs.
Next, you’ll need to decide on the details of your plan. This includes things like the maximum reimbursement amount, the types of medical expenses that will be reimbursed, and the eligibility requirements for your staff.
Once you have the details of your plan in place, you’ll need to communicate it to your employees. This includes explaining how the plan works, what expenses are eligible for reimbursement, and how to submit a claim.
Maximizing Your Church’s Health Benefits with an HRA: Tips and Best Practices
To maximize the benefits of your HRA, there are several tips and best practices to keep in mind. First, make sure that your staff understand how the plan works and how to submit a claim. This will ensure that they take advantage of the benefits that you’re offering.
Second, consider offering wellness programs to them. This can include things like exercise classes, healthy eating seminars, and smoking cessation programs. By promoting healthy habits, you can help your staff stay healthy and avoid costly medical expenses.
Finally, be sure to review your plan regularly to ensure that it’s meeting the needs of your church and its staff. This includes reviewing the reimbursement amounts, the types of medical expenses that are eligible for reimbursement, and the eligibility requirements for your people.
Providing health benefits to your church staff is an important way to show that you care about their well-being. By implementing an HRA, you can provide flexible and cost-effective health benefits that can attract and retain employees.