Principal Reimbursement ArrangementSM
The Principal Reimbursement Arrangement is a two-in-one solution for group medical coverage. This benefit includes both a high deductible insurance design and reimbursement arrangement in one policy - with the entire solution funded exclusively through premium.
Basics
The two components of the Principal Reimbursement Arrangement work together to help employees pay for health care services.
Employers select an annual reimbursement amount and choose whether to reimburse 50 percent or 100 percent of employees’ eligible expenses. As employees incur claims, the reimbursement benefit “pays first” to help satisfy the employees' deductible and out-of-pocket expense limits.
Top features
- Employers pay a consistent monthly amount, not an unpredictable amount of claims.
- The benefit is not self-funded; Principal Life assumes the risk through the insurance contract.
- Unused benefits roll over to future years, but they are not portable should an employee leave the company.
- Claims and administration are streamlined since the insurance benefit and reimbursement arrangement are within one policy.
- Sole proprietors, partners or S corporation owners - who are typically ineligible for reimbursement benefits - can participate in the Principal Reimbursement Arrangement.
Principal HealthyConnections
The Principal HealthyConnections program is included with the Principal Reimbursement Arrangement to help employees make good choices with their health and health care.
For more information
- Contact your insurance broker
- Find a local Principal Life sales office
This is general information about the Principal Reimbursement Arrangement underwritten by Principal Life Insurance Company. It is neither an insurance contract nor a complete statement of the provisions, benefits, limitations, and reductions. Be sure to obtain a complete proposal from Principal Life before deciding if the Principal Reimbursement Arrangement will work for your business.
| EC 2175 | 12/2008 |
