For all of our collective benefits know-how, a type of health care plan has us EBNers stumped. We got word last week of an HRA-esque arrangement called a PFA, or participating funding arrangement. And then we looked at each other and asked, "What is a PFA?"

According to one of the folks at Partners Benefits Group, a Massachusetts-based firm that administers PFAs, a PFA is a medical expense reimbursement plan that differs from an HRA and/or HSA in that money is not placed into an individual account, but rather is averaged over an entire population. A PFA is the “purest form of insurance,” the rep said, because the employer only funds when it is absolutely necessary.

So, I put it to you, pros – help educate the EBNers on PFAs. What do you know about PFAs? Are you interested in learning more? Would you prefer them to more popular account models, like HRAs and HSAs?

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