Best Cost-Saving Strategies for Employer-Sponsored Health Plans

Healthcare costs rise yearly, leaving employers searching for smarter benefit strategies. Medical Expense Reimbursement Plans (MERPs) are one of the best cost-saving strategies for employer-sponsored health plans. Find five companies that help employers cut costs while keeping employees covered. 

What Are MERPs?

Medical Expense Reimbursement Plans (MERPs), also called Health Reimbursement Arrangements (HRAs), let employers set aside tax-free funds to reimburse employees for healthcare expenses. Instead of locking into one-size-fits-all insurance coverage, a MERP gives companies the flexibility to decide what expenses qualify and how much to contribute.

For employers, MERPs can reduce overall benefit costs while complying with federal guidelines. For employees, they create a safety net for expenses that traditional insurance may not fully cover, such as copays, deductibles, or prescriptions.

In short, a MERP bridges the gap between standard health insurance and real-world medical costs, offering a practical way to manage rising healthcare expenses.

Methodology

The companies featured were evaluated based on five key factors — cost savings potential, plan flexibility, compliance support, ease of administration, and employee education. Only providers that consistently demonstrate strong performance across these areas were included. Discover solutions that help employers control healthcare costs while ensuring employees receive meaningful benefits. 

1. The Difference Card

The Difference Card has built its reputation on creating measurable savings for employers through fully customized MERP strategies. Unlike generic reimbursement plans, The Difference Card designs each program to fit an employer’s specific needs, helping to reduce healthcare costs without cutting back on benefits. Many employers report double-digit percentage savings within the first year. 

What truly sets this provider apart is the Difference Guarantee. This unique promise gives employers confidence that savings goals will be met. Alongside cost reduction, The Difference Card provides robust compliance support and strong employee education tools, which make benefit materials easier to understand. 

Key Features: 

• Savings guarantee: Employers only pay if projected savings are realized, ensuring no financial risk. This makes the plan highly attractive for organizations with tight budgets.
• Flexibility: The company offers customizable plan structures that can adapt to small businesses or large enterprises. Flexibility is one of the top reasons clients report higher satisfaction.
• Proven ROI: Average savings hover around 18–20% annually, often exceeding $2,000 per employee. These concrete numbers provide confidence in long-term value.
• Dedicated support: A dedicated Account Executive is assigned to each client for tailored assistance.

2. Aetna

Aetna offers its HealthFund HRA in comparison to traditional insurance coverage. Employers fund the plan, and employees use the money for eligible out-of-pocket costs like copays and deductibles. One standout benefit is rollover capability, allowing unused funds to carry forward year to year and helping employees build a cushion for future expenses. 

Aetna has an expansive national provider network and a familiar system. Employers benefit from predictable contributions and deductible offsets, while employees enjoy the security of extra support for routine healthcare costs. 

Key Features: 

• Automatic claims processing: Visits within Aetna’s national network are paid directly from the employer-funded HRA — no manual forms needed.
• Tax-free benefits: Contributions by employers are excluded from employees’ taxable income, maximizing benefits on every dollar.
• Rollover capability: Unused balances typically carry over into the following year, helping employees build a safety net.
• Seamless integration: Designed to pair with deductible-based group health plans, ensuring smooth implementation and user experience.

3. Liferaft

Liferaft focuses on small and mid-sized employers that want to break free from the traditional group plan model. Instead of paying large group premiums, employers can reimburse employees for individual coverage through Liferaft’s digital HRA platform. 

The platform is simple to set up — often within 24 hours — and automates reimbursements, claims, and reporting. Employers can save up to $1,500 per employee annually, while workers gain the freedom to choose their own coverage. 

Key Features: 

• Modular, API-driven platform: This platform offers flexible, scalable HRA solutions — either out-of-the-box or fully branded — making customization easy for employers.
• Administrative automation: Core functions like plan design, eligibility and claims processing are streamlined through proprietary claims engines and digital tools.
• Ideal for SMBs: Tailored to small and midsized businesses, Liferaft’s platform addresses the affordability crisis by reducing cost and admin burdens.
• Strategic acquisition: Now part of Vitable Health’s unified platform, combining ICHRA and direct primary care offerings potentially reduces costs by 35% and offers zero out-of-pocket care access.

4. EmpowerFlex

Empowerflex is designed for employers seeking maximum customization. The program allows companies to set annual contribution limits, define whether unused funds roll over and choose which expenses qualify — from medical and prescription costs to dental and vision care. 

This flexibility makes EmpowerFlex attractive to midsize and large employers that want to fine-tune their benefits. Empower’s third-party team handles administration, ensuring compliance with IRS and ACA rules while reducing the burden on HR staff. 

Key Features: 

• Next-day claims payments: Quick reimbursements streamline employee access to funds and enhance satisfaction.
• Personal account manager: Each employer receives one-on-one support — from setup through annual administration — to ensure smooth implementation.
• Tech integration: EMPOWERConnect syncs seamlessly with HRIS, payroll, and benefits platforms, minimizing manual data tasks.
• Multi-channel access: Employees can manage benefits via Visa debit cards, mobile apps or an online portal, enhancing convenience and usability.
• Full benefits suite: Beyond MERP, the provider supports FSAs, HSAs, spousal HRAs, and commuter benefits, making it an “all-under-one-roof ” solution.

5. Inspira Financial

Inspira Financial delivers a modern, technology-driven HRA platform that integrates directly with payroll and benefits systems. Employers decide annual allocations, while employees can access their funds via mobile app or Inspira debit card. 

This real-time access makes reimbursements seamless, and unused funds can roll over depending on employer preference. The employer portal simplifies claims approvals and offers detailed reporting tools, making it easier to monitor costs.

Key Features: 

• Customizable HRA Design: Employers can tailor contribution amounts, qualified expenses, and reimbursement rules to fit workforce and budget needs.
• Wide Expense Coverage: HRAs support reimbursement for doctor visits, medications, wellness programs, and more — beyond basic medical costs.
• Embedded in Benefits Strategy: As part of a broader health benefits portfolio, HRAs can be aligned with existing group coverage to fill gaps.
• Real-Time Access: Integrated platforms allow employees to promptly access and track reimbursements, improving transparency and control.
• Admin Flexibility: Inspira stands ready to build custom HRA workflows for employers, covering contributions and disbursements.

Companies at a Glance

Savings That Add Up

Medical Expense Reimbursement Plans give employers a smarter way to cut costs while improving benefits. From customizable solutions like The Difference Card’s guaranteed savings to technology-driven platforms such as Inspira Financial, these providers make healthcare more manageable for both companies and employees. The right MERP choice helps organizations see the savings and employees feel the difference.