A self-funded money pay well being plan can and must be funded by means of a Well being Reimbursement Association (HRA). However how does a plan sponsor defend towards overdrafts?
HRA overdraft safety may be positioned by means of a number of strategies:
- Casualty insurance coverage protection
- Prompt credit score limits issued by a monetary establishment or hedge fund
- Annual Mixture (non-insured) cease loss plan doc provision
A sensible plan sponsor is aware of the right way to fund and construction plan methods correctly leaving much less likelihood of overdrafts. They know there’s no such factor as a Million Greenback declare they usually know there’s lower than a 1% likelihood they are going to ever have to set off overdraft safety.
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