Contact: Matt Lockard

Tel. 805-650-9087


California small business owners are being pressured from every angle to remain in business and stay profitable. Gas prices, the cost of office supplies, liability insurance and even the cost to send a letter keeps going up and up. So what should companies do to cut cost?

Aside from layoffs, health insurance is frequently looked at as a place to save money. One California agent, Matt Lockard has started to showing Small Business owners how they can save as much as 20%-50% on health insurance premiums by opening a Health Reimbursement Account (HRA).

“Many people are not aware of this group health insurance strategy” according to Matt Lockard owner of . HRA’s went into law in June of 2002. That was the very beginning of the just past housing boom and spending frenzy enjoyed by many Americans. Now, stung by rising prices, California business owners need to find creative ways to cut costs.

“Setting up a High Deductible Health Plan with a top California health insurance carrier along with an HRA is a great way to provide a good, solid health benefits for your employees” says Matt Lockard. Generally the employer switches from the traditional high cost HMO or co-pay plan to a high deductible health plan and also sets up a Health Reimbursement Account with a bank. The goal is for the savings from the new low cost high deductible health plan to more than offset the amount needed to fund the HRA. If this works, the employer will save money.

Employees may also see a savings in the first month on their pay check. If the employee is paying a portion of the health insurance premium, his or her cost will go down do the lower cost high deductible plan. “The HRA strategy also puts more money into the hands of the employees who are also contributing to the monthly premium” Explains Matt. “If the employees are contributing to the health insurance premium, and the high deductible plan cost less, their share of the premium will also go down.” That’s good news for any household who is also looking for places to cut cost. A win win!


If you’d like more information about HRA’s or if you’d like to schedule an interview please call Matt Lockard at 805-650-9087 e-mail Matt at .

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