Tax-favored Health Reimbursements Arrangements (HRAs) and John Alden Medical
Savings Account (MSA) Plans Provide Affordable, Innovative Employee Benefits
MILWAUKEE, Oct. 3 /PRNewswire/ -- As small business owners scramble to
find health insurance they can afford, John Alden Life Insurance Company
introduces Health Reimbursement Arrangements (HRAs) and expands the
availability of Medical Savings Account (MSA) Plans. These affordable options
provide desirable benefit programs that help attract and retain valuable
employees -- often at 20 to 30 percent less than traditional health insurance
plans. John Alden is a legal entity of Fortis Health -- one of the nation's
leading providers of MSA Plans.
HRAs further expand John Alden's existing line of tax favored employee
benefit options that include MSA Plans, Flexible Spending Accounts (FSA),
which enable employees to use tax-free dollars to pay for health care expenses
not covered by insurance and Premium Only Plans (POP), which allow employees
to pay for medical, dental, group term life and short-term disability premiums
using pre-tax income.
Innovative solutions for small business owners faced with soaring health
premiums
HRAs allow employers to reimburse employees for covered medical expenses
up to an established limit. Small businesses can realize substantial premium
savings when an HRA is combined with a John Alden high deductible health plan.
HRA reimbursements are tax deductible for the employer and are available to
any size group. There is no need to pre-fund an HRA, giving employers a real
cash flow advantage. HRAs also offer business owners greater flexibility in
plan design.
The MSA Plans have two components -- a high-deductible medical insurance
plan and a tax-favored Medical Savings Account. The combination presents an
affordable and innovative option for groups of two to 50 employees -- often
providing savings of 20 to 30 percent, compared to traditional small group
insurance plans. Business owners can realize even more savings -- an average
of six percent -- by choosing health plans that exclude outpatient
prescription drug coverage under the traditional plan and cover them instead
with MSA funds. MSA Plans also offer a choice of deductibles, employee
portability of the MSA and the ability to roll over unused funds in the
account to the following year. Funds can be placed in a wide range of
investment vehicles, accumulate interest on a pre-tax basis and can be used
after age 65 to supplement retirement income.
The best combination of options
All of John Alden's tax favored options can be combined in different ways
to maximize tax efficiency and savings. In fact, John Alden product experts
strongly recommend adding an FSA or POP to an HRA or MSA Plan. Because
different groups have different budgets and needs, representatives for North
Star Marketing (the national sales and distribution division of John Alden)
work with agents to find the best fit for each of their clients. For example,
generally HRA Plans are more attractive to employers. However, in cases where
a business owner is not eligible for the benefits of an HRA Plan, John Alden
allows groups to have more than one type of plan -- the owner having the MSA
Plan, and the employees the HRA.
"John Alden tax favored options are especially ideal for small businesses
looking for ways to reduce healthcare benefits costs," said Kerri Mansberg,
Vice President of Product Management for John Alden's Small Group department.
"They are smart solutions for employers who are looking to save money without
foregoing health insurance for their employees."
Business owners may obtain quotes on John Alden MSA and HRA Plans now and
plans will be available for November 1, 2003 effective dates and beyond for
the following states: Alabama, Arizona, Arkansas, Georgia, Idaho, Illinois,
Indiana, Iowa, Michigan, Mississippi, Missouri, Nevada, North Carolina, Ohio,
Oklahoma, Pennsylvania, Tennessee, Texas, Virginia and Wisconsin, with
additional states being rolled out in the coming months. Further information
on all of John Alden's tax favored employee benefit options -- MSAs, HRAs,
FSAs and POPs -- is available by calling 1-877-225-5077 or visiting
http://www.nstarmarketing.com .
About Fortis Health:
Fortis Health ( http://www.fortishealth.com ) is a national health insurance
company developing and providing individual medical, small group, short term
and student health insurance products, issued and underwritten by Fortis
Insurance Company, John Alden Life Insurance Company and Fortis Benefits
Insurance Company. In business since 1892, the company provides health
insurance coverage for over one million people nationwide. With almost 3,000
employees, Fortis Health is headquartered in Milwaukee, Wis., and has
operations offices in Minnesota, Idaho, and Florida, as well as sales offices
across the country.
Fortis Health is part of Fortis, Inc., a financial services company that,
through its operating companies and affiliates, has built leadership positions
in a number of specialty insurance market segments. Fortis, Inc. is part of
Fortis, a financial services provider active in the fields of insurance,
banking and investment. As of year-end, 2002, Fortis had total assets of
approximately $500 billion. As one of the world's largest financial services
companies, Fortis ranks 73rd based on revenues on the Fortune 'Global 500'
(July 21, 2003) and 40th based on revenues on Forbes' International 500 list
(July 3, 2003).
SOURCE Fortis Health
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Related links:
http://www.fortishealth.com
http://www.nstarmarketing.com
CONTACT:
Media, Michelle Love-Johnson of Seroka Public
Relations, +1-262-523-3740, michelle@seroka.com
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