Mastering Healthcare Costs: How HRAs and LevelUp Pros Can Help Small Businesses Thrive

Levelup-Login • 28 August 2024

A person is holding a calculator in front of a hospital room.

In today’s competitive business landscape, managing rising healthcare costs is a challenge for many small businesses. With the cost of providing health benefits continuing to climb, small business owners often feel like they’re stuck between a rock and a hard place—trying to balance the need to attract and retain top talent with the pressure of maintaining a sustainable budget.

One powerful tool that can help small businesses regain control over these escalating costs is the Health Reimbursement Arrangement (HRA). At LevelUp Pros, we have a proven track record of helping small businesses save over $1 million by leveraging creative strategies that not only cut costs but often improve benefits. Our philosophy is rooted in the belief that the best solutions are those that offer a win-win for both employers and employees.

What is an HRA?

A Health Reimbursement Arrangement is a type of employer-funded plan that reimburses employees for out-of-pocket medical expenses and, in some cases, health insurance premiums. Unlike traditional group health plans, HRAs offer businesses the flexibility to design their benefits package according to their specific needs and financial situation.

With an HRA, employers have the power to set their contribution levels, providing predictable costs while giving employees the freedom to choose the health coverage that works best for them. This flexibility can be particularly beneficial for small businesses looking to manage their healthcare spending more effectively.

How HRAs Help Small Businesses Save

Cost Predictability: One of the main advantages of an HRA is that it allows employers to control their healthcare budget. By setting a fixed contribution amount, businesses can predict their expenses more accurately and avoid the financial surprises that often come with traditional health insurance plans.
Customization: HRAs are incredibly flexible and can be tailored to meet the specific needs of a business. Employers can choose to reimburse a wide range of healthcare expenses, from insurance premiums to out-of-pocket costs like deductibles and copayments. This level of customization ensures that the benefits package aligns with both the company’s budget and the needs of its employees.
Employee Empowerment: HRAs put the power of choice back into the hands of employees. They can choose the healthcare providers and services that best meet their needs, leading to higher satisfaction and better health outcomes. When employees feel valued and supported in their healthcare choices, it contributes to higher morale and retention rates.
Tax Advantages: Contributions to an HRA are tax-deductible for the employer, and reimbursements made to employees are typically tax-free. This provides a financial incentive for small businesses to offer competitive health benefits without the burden of higher taxes.

The LevelUp Pros Difference

At LevelUp Pros, we specialize in helping small businesses navigate the complex world of employee benefits. We understand that cutting costs shouldn’t mean cutting corners when it comes to your employees’ well-being. That’s why we focus on creating strategies that not only reduce expenses but also enhance the overall benefits package.

Our innovative approach to HRAs has helped numerous small businesses save significant amounts of money—over $1 million collectively—while still providing robust health benefits. In many cases, we’ve been able to improve the benefits offered, ensuring that employees receive better care and support.

We believe in the power of win-win solutions. By partnering with LevelUp Pros, small businesses can regain control over their healthcare costs while ensuring their employees are well taken care of. It’s not just about cutting costs; it’s about creating value for both the business and its employees.

Conclusion

As healthcare costs continue to rise, small businesses need innovative solutions to stay competitive. HRAs offer a flexible, cost-effective way to manage these expenses while empowering employees with greater choice in their healthcare. At LevelUp Pros, we’re committed to helping you find the right balance between cost savings and quality benefits. With our expertise, you can achieve significant savings while creating a healthier, happier workforce.

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Navigating Employee Substance Abuse: Compassion, Compliance, and Confidentiality

by Levelup-Login • 12 September 2024

Picture this: one of your employees informs you they need to take time off for inpatient drug rehabilitation. What would your first response be? For many business owners, initial reactions include feelings of anger, disappointment, or even betrayal. You might wonder how you missed the signs, or question whether this employee is someone you want on your team. These reactions, while understandable, are often driven by misconceptions about addiction and how to handle these situations from both a legal and human standpoint. The truth is, addiction is a medical condition, and it’s crucial to handle employee substance abuse cases with both compassion and compliance. Mishandling the situation can not only harm the employee but also lead to legal issues for your business. Here’s a comprehensive guide for small to midsized business owners on how to approach this delicate topic and ensure you’re protecting both your employees and your company.

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The Costly Mistake of Delaying Payday: What Every California Business Owner Should Know

by Levelup-Login • 23 August 2024

Imagine this: payday is every Friday, but you’re planning a long weekend. You think, “I’ll just process payroll on Monday instead.” You even check with your employees, and they all say they don’t mind the delay. No problem, right? Wrong. This could be one of the most expensive mistakes you can make as a business owner. In California, once you establish a payday, you must stick with it. Employees cannot waive their right to timely pay, even if they agree to it. Whether you’re on vacation, out sick, or dealing with any other reason, your obligation to pay employees on time—specifically on their regularly scheduled payday—remains. Even if your employees seem okay with a late paycheck, delaying payment in California violates timely pay laws, and the consequences can be costly. The penalties depend on several factors, including whether the delay was accidental or intentional, whether it’s a repeat offense, how long the employee had to wait, and whether they are still employed. For a first-time accidental violation, penalties typically start at $100 per employee. If it happens again, or if the violation was intentional, the penalties increase and include a percentage of what’s owed. The costs skyrocket if an employee has left the company and hasn’t been paid according to the final paycheck timelines. In such cases, you could owe them their average daily rate of pay for every day they had to wait, up to a maximum of 30 days. This applies to both late payments and underpayments and includes weekends and holidays. Ensuring employees are paid accurately and on time is crucial. At LevelUp Pros, we help our clients standardize their payroll processes, comply with state labor laws, and ensure timely payments. If you’ve underpaid or paid someone late in the past, we can evaluate your process, calculate any penalties, and help you minimize liability. If you’d like an audit or review of your current payroll system, feel free to reach out to us at LevelUp Pros. We’ll help you identify red flags, improve efficiency, and ensure your employees are happy, all while reducing liability for your company. Consider us your go-to resource for payroll, HR, and benefits.

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Communicating the Final Details – Termination Letters

by Levelup-Login • 14 August 2024

The importance of maintaining clear and standard communication is just as important during an employee’s offboarding journey as it is while onboarding. Composing final details in a termination letter is beneficial for both exiting employees and the organization and should be provided in both voluntary and involuntary situations. While a termination letter provides written acknowledgement for voluntary terminations, it also provides guidance during an involuntary termination. Overall, the document provides a written record of what happened, helping to avoid future confusion or legal issues.

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