How would I go about determining if I should contribute more or less into those HRA accounts?

Depending on your region, health insurance carrier, and the size of your group (usually over 100 eligible employees), your insurer can supply you with information that details how much your employees have spent on healthcare costs over the course of the year, and what kinds of health services they accessed. This review will help you determine if the healthcare account funding allocation you offer employees is appropriate or if it needs to be adjusted. Based on this information, you can determine whether you’ve been contributing too much, too little, or just enough to the plan.

An Appropriate Amount

You might find that the amount you’ve been contributing to the plan has been right on the mark. On average, approximately 65 percent of your employees will roll over funds from year to year, 25 percent will exhaust their healthcare account funding but not satisfy their deductible, and approximately 10 percent will exhaust their account funding, satisfy the deductible, and hit their maximum out-of-pocket. Most of your employees will have some roll over (that’s a good thing) and some employees will have had to pay for some of their medical expenses out-of-pocket (that’s unavoidable). If these two extremes are reasonably balanced, you’ll know you’ve found an appropriate contribution level and should work to maintain it. Over the years, however, employee needs will change, and you may have to contribute more or less to the healthcare account. The purpose of an annual review of your CDHP is to assess your plan’s performance and determine any necessary adjustments. Let your benefits advisor and insurer help you navigate these important decisions.

Coaches' Takeaway

Renewal time is a great time to review your efforts. Review account utilization with your Benefits Advisor to determine appropriate funding from one year to the next.

Tools & Resources

CDHPCoach’s Storage Facility, where the Coach has organized and compiled a vast amount of tools and resources for you to access.


Housed here are key components and information within the book, Bend the Healthcare Trend which was the impetus behind the CDHPCoach.