One way to reduce company benefit costs is to offer innovative plans. There are several good alternative benefit options that are now becoming more mainstream. These plans answer the need to reduce high benefit premiums for companies.

The new programs, Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs), are a tax-favored and cost-effective means to providing health insurance.

HRAs are funded by employer contributions and allow employers to provide funds on a monthly basis to accounts employees can use to pay for deductibles, and other out of pocket expenses not covered by their health plans.

The unused portion of funds in an HRA at the end of the plan year remains with the employer. The unused monies can be allocated to help fund future medical expenses and retiree medical costs.