Introducing Cure Card and Cure HRA
The CMS projects healthcare expenses will rise by 5.5 percent a year for the next decade. What does this mean for you and your business?
For the purposes of simplicity, suppose you own a stable business with 100 employees, each requiring $10,000 on healthcare a year. Right now, your business spends $1,000,000 on healthcare and operates at a healthy EBITDA margin of, say, $500,000.
After one year, healthcare expenditures rise 5.5% to $1,055,000. Not a big deal, right?
After two years, healthcare expenditures rise another 5.5% to $1,113,025. No problem, still operating in the green.
After ten years, however, expenditures rise to $1,708,144, completely wiping out your once stable earnings margin, and then some.
After twenty years, expenditures will have reached $2,917,757, nearly 3 times the original figure.
5.5% may seem like a harmless number, but it’s not — it can very well cripple your business’s bottom line within a few years.
Introducing Cure Card
In our effort to help combat rising healthcare costs, we are excited to launch the Cure Card service. Here’s how it works:
- Kevin, your employee, receives a $100 bill for a doctor’s visit. He pays using the Cure Card, drawing funds from a corporate-wide account.
- The bill instantly appears in an electronic format on Kevin and your company’s Cure accounts.
- Through Cure’s app, your company deducts the billed amount from Kevin’s paycheck in up to 26 installments. This amount is tax-deductible, saving your business and Kevin 8.45% and 20–40%, respectively, on the billed amount.
In effect, through Cure Card, Kevin draws funds from your business’s bank account, and then reimburses you later, saving everyone money.
When can I use Cure Card?
If your business buys individual health insurance policies, your employees may use Cure Card on any healthcare expenses not covered by the insurer. This can include any costs related to meeting deductibles, paying co-pays, and other nonsense health insurers slap onto plans.
If your business funds its health plans, you can generate more savings from Cure Card. To illustrate:
Sam, your employee, needs a hip replacement
Scenario 1: Suppose your business utilizes a traditional insurer. Sam goes to a large hospital recommended by your insurer. The hospital charges $50,000, 90% of which is paid by the insurer. Sam uses Cure Card on the remaining $5,000, saving the business $422.5. The $45,000 paid by the insurer is indirectly passed onto the employer via premiums.
Scenario 2: Suppose your business funds its own health plans. Sam goes to a surgery center that accepts cash. For simplicity, this surgery center also charges $50,000, all of which Sam pays for using Cure Card. Your business now saves 8.45% of $50,000, or $4,225.
In this exercise, the business that funds its own plans saves 10x more than the one utilizing an insurer. In practice, the self-insured employer saves even more, as cash-pay surgery centers tend to have a 40–50% discount on prices to begin with.
Regardless of what type of health plan you currently offer, Cure Card can help your business and your employees save money.
Introducing Cure HRA
If your business hasn’t yet thought much about health benefits, we also have a service for you: Cure HRA.
Unlike the Cure Card, health reimbursement arrangements (HRAs) are not new. Businesses set aside an allowance for each employee to spend on healthcare-related expenses, saving tax dollars in the process. Here’s how it works with traditional HRA administrators:
- Claire, your employee, pays for a $100 doctor’s office visit.
- Claire has to fill out a form documenting her expenses, attach all relevant receipts, and then physically mail or fax the items to the HRA administrator (who probably is your insurer).
- Your insurer will manually review the documents, and if they feel like it, approve the reimbursement.
In summary, it’s a long-winded, inefficient process that discourages people from actually using the HRA.
With Cure HRA, we’ve simplified the entire process of reimbursement. Here’s an example of how Cure HRA works:
- Gunjan, your employee, uses the Cure HRA card to pay for a $100 doctor’s office visit, drawing funds out of the stipend your company has allotted to him.
- Cure’s app automatically reviews the transaction and approves the reimbursement within two seconds.
- Gunjan is reimbursed.
Like with the Cure Card, your business saves 8.45% per medical bill. Ultimately, Cure HRA is a service that adheres to arguably the golden standard of health benefits: common sense.
How much does Cure Card and Cure HRA cost?
There is no sign-up fee or down payment to use either service. Instead, you pay as you go. Both services charge 2.1% of each successful transaction. Since you save at least 8.45% per transaction, you are guaranteed to save money.
Furthermore, you are free to discontinue either service at any time. There are no fees associated with cancellation.
How do I sign up?
Setting up either service should take just a few minutes. If you’d like to learn more about Cure Card or Cure HRA, don’t hesitate to reach out. We’re happy to chat!
Visit Curebenefits.com to schedule a demo or ask any questions you may have.