The major benefit of these plans is that they are Affordable Care Act (ACA) compliant and are proven to be an effective retention strategy. Coverage is guaranteed, meaning that eligible employees who apply will be accepted. Employees will usually have access to a wider network of doctors than if they were on an individual plan.
The shortcomings are that they can be expensive, making them detrimental to a business owner’s budget, with unpredictable premium increases every year, and they are usually a one-size fits all coverage option.

What was once traditionally viewed as viable for only larger companies, self-funded plan designs with stop-loss insurance offer key advantages that could benefit all employers. They offer:

-Savings compared to fully insured plans

-An opportunity for a refund

-Flexibility to tailor to needs with richer benefits

-Quality provider access

The potential downside is that these plans are medically underwritten, making them not a good fit if your group has any employees with some major pre-existing conditions.

An HRA is a simple reimbursement model. The employer decides how much money to contribute each month and then the employee chooses a plan that works for them. The employee will then submit receipts for premium payments and get reimbursed. Benefits of reimbursing for health insurance are:

-Budget control for employer

-Allows employer to get out of the health insurance game

-Flexibility of choice for each employee

-Tax efficiency

The potential downside is that traditional group insurance can usually provide a stronger network of doctors than an HRA utilizing individual plan coverage