Flex plans are popular with employees, and why not — they can often save over 40% on dollars that they are already spending, on out of pocket health costs, child care, and the cost of commuting to work. For employers with at least a half dozen employees, a flex plan often pays for itself in payroll tax savings, while employees enjoy big savings on income taxes.
Health Savings Accounts (HSA) can be paired with a lower-cost health plan, and offered as a single option, or an employee choice in a portfolio of medical plans. This can be a great strategy for an uber-healthy workforce.
Heath Reimbursement Arrangements (HRA) and other forms of partially self-insuring are not only available to large corporations. Businesses with as few as 25 employees may have opportunities to save more on benefits when their employees use fewer health services.