Madison, WI (May 12, 2014) – TASC is pleased to announce the launching of a Funded Health Reimbursement Arrangement (Funded HRA) service offering for public sector entities. A leading benefits administration firm headquartered in Madison, Wisconsin, TASC has grown to be the largest privately held, stand-alone third-party benefits administrator in the United States.
A Funded HRA provides employees a source of tax-free funds to pay for out-of-pocket uninsured medical expenses and then takes it a step further by integrating investments and allowing employees to invest, accumulate interest, and receive reimbursement payments, all tax-free. An employee who receives $1,000 a year in an unfunded HRA accumulates $20,000 in 20 years. Meanwhile, with TASC’s Funded HRA (assuming a 4 percent growth rate), the same employee accumulates over $30,000 in that same 20 years!
Employers who combine a Funded HRA with a Higher Deductible Health Plan can gain control of healthcare expenses for their active employees. A funded HRA can be used exclusively to pre-fund post-employment healthcare expenses for retirees. Participant accounts accumulate and compound tax-free during employment and are used to pay for retiree health insurance premiums and uninsured medical expenses during the employee’s retirement years.
“Offering a Funded HRA service offering really helps public and government entities offer employees an attractive, sustainable, and flexible healthcare benefits package,” says Dan Rashke, TASC CEO. “And it helps employers save money on healthcare, create a hedge against healthcare inflation, and prepare for future healthcare obligations.”
