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Principal Reimbursement ArrangementSM

The Principal Reimbursement Arrangement is specifically designed to deliver the benefits of consumer-driven healthcare to small employers and offer a level of benefits typically available only to larger employers!

Advantages

This product offers benefits much like a health reimbursement arrangement (HRA), but Principal Life assumes the risk through a group medical insurance contract. The built-in reimbursement benefit is funded through premiums also easing cash flow issues. Employers pay a consistent monthly premium rather than fund an unpredictable number of claims each month.

Other benefits include:

  • Sole proprietors, owners and partners of S corporation can participate in this reimbursement benefit, an advantage over HRAs.
  • Claim payments are integrated for seamless submission and less paperwork. Everything, including reimbursement benefits, is handled through a single claim.
  • Members may accumulate reimbursement benefits for future use. Unused reimbursement benefits can roll over to future calendar years, up to a total amount equal to the PPO out-of-pocket expense limits.

A focus on consumerism

This arrangement provides employees and their covered dependents first dollar benefits and an incentive to use their benefit dollars wisely. Our product gives you more flexibility in designing healthcare coverage, and gives employees greater choice in putting those benefits to work. Plus, our Principal HealthyConnections program provides health and wellness resources to help members become better healthcare consumers.

For more information

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IN 16638 03/2005

 

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