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California employers are being deprived of one of the best tools available for lowering the cost of coverage and offering health benefits. They are being deprived of this tool, not by state legislators and regulators, but because of concerted action by the state’s health plans. At a time when the governor and the legislature are desperate for solutions to the vast number of uninsured, it is insane employers are forbidden from using a tool employers everywhere else are adopting.

This tool is a health reimbursement arrangement. Employers all over the country have embraced HRAs as a workable solution to providing affordable health insurance coverage. Roughly 6 million workers are covered by HRA programs and the rate of growth is sizzling.

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