Guide to Small Business Benefits
Download Liferaft's guide on the easiest ways to set up small business benefits and save on health insurance costs.
In many states, small businesses can save thousands each year when using Health Reimbursement Arrangements to optimize the distributions of their benefits.
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GUIDE TO SMALL BUSINESS BENEFITS

What's included in your download
Liferaft's Guide to Small Business Benefits is the most comprehensive guide available, giving a small business owner everything needed to quickly offer flexible and affordable benefits for your team.
1
What is an HRA?
A Health Reimbursement Arrangement (HRA) is a health spending account an employer can use to reimburse employees tax-free for out-of-pocket healthcare expenses. Compared to group health plans, HRAs are more flexible, customizable, and affordable. Liferaft makes administering an HRA easy.
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2
Requirements & features
Depending on the type of HRA you are setting up, there will be different unique requirements that the Liferaft team will help you to easily navigate. All HRAs must be funded entirely by the employer, not through salary deductions, and the accounts can only reimburse employees for qualified and substantiated medical expenses.
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Eligible HRA expenses
HRAs only cover qualified medical and dental expenses, as defined by the IRS. Eligible expenses include costs to alleviate or prevent a physical or mental ailment, but not expenses for general health maintenance such as vitamins. Employers have the right to exclude any qualified expense from their eligible reimbursable expenses.
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When an HRA makes sense
An HRA is often the most cost-effective option for a remote or distributed team, when there are major cost differences between the group and individual market, for employers hoping to expand benefits or offer benefits for the first time, or for companies who have a fluctuating workforce size.

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Different HRA types
Recent legislation has created even more types of HRA, giving employers even more flexibility over their benefits. It is now possible to use an HRA to reimburse employees for individual health insurance premiums. Plus, fewer restrictions on who can be covered by an HRA.
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HRA vs. HSA vs. FSA
There are three types of accounts people use to save for medical expenses: Health Reimbursement Arrangements (HRAs), Health Savings Accounts (HSAs), and Flexible Spending Accounts (FSAs). All three acronyms are similar, but there are significant differences between them.
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The Easiest Way to Start Offering Benefits
Learn more with Liferaft's Small Business Benefits guide →
As a small business owner, it can be overwhelming to think about starting to offer benefits. There are so many things to consider, from the type of benefits to offer, to how much it will cost. However, offering benefits can be a great way to attract and retain employees, plus it can save you money on taxes. Offering employee benefits doesn't need to break the bank or take months to set up.

A health reimbursement arrangement (HRA) is the easiest way for an employer to quickly start offering flexible employee benefits, reimbursing employees for out-of-pocket healthcare expenses. The funds in the account are not subject to taxes and can be used to cover a wide range of healthcare costs, including premiums, co-pays, and dental and vision expenses. Compared to traditional group health insurance plans, HRAs are more flexible, affordable, and easier to administer.

Why employers love Health Reimbursement Arrangements

Available for all employers
Group health insurance can be complex, restrictive and  unpredictable financially. With a health expense account, simply set a monthly benefit allowance and employees can use their benefits on any qualified medical expense they choose.
Cost-effective
Many states offer more affordable insurance plans on the individual market than on the small group market. A health expense account allows employers to fund all or part of their employees' health insurance costs with pre-tax dollars, freeing up budget without sacrificing benefits.
Flexible
With a health expense account, employees choose how to use their benefits, rather than being stuck in a one-size-fits-all group plan. This flexibility allows employees to tailor their coverage to fit their personal health, budget, and family situation.
What do Liferaft's Health Reimbursement Arrangements make possible?
  • More choice for your employees
  • Lower administrative burden to your HR department
  • Flexible structure allows for added benefits
  • Potential cost savings
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