Group Plans

The Elkins Agency
The Elkins Agency

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What is the HRA?

Elkins The HRA (Health Reimbursement Arrangement) allows businesses to fund certain qualified expenses for their employees; employer contributions used by employees are 100% deductible and employees pay no taxes on their reimbursements. HRA’s are governed by Section 105 of the Internal Revenue Code.

How does the HRA help employees?
Employees use the HRA to pay for eligible, out-of-pocket health care expenses and pay no taxes on reimbursements.

How does the HRA help employers?
Employers write off 100% of the HRA contribution used by employees, can choose to retain unspent funds at the end of the Plan Year and offer employees additional choice in managing their health care benefits.

Health Savings Account

A Health Savings Account (HSA) is an account that you can put money into to save for future medical expenses. There are certain advantages to putting money into these accounts, including favorable tax treatment. HSAs were signed into law by President Bush on December 8, 2003.

Who Can Have an HSA
Any adult can contribute to an HSA if  they:

  • Have coverage under an HSA-qualified “high deductible health plan” (HDHP)
  • Have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care, or long-term care insurance are permitted).
  • Are not enrolled in Medicare.
  • Cannot be claimed as a dependent on someone else’s tax return.

Contributions to your HSA can be made by you, your employer, or both. However, the total contributions are limited annually. If you make a contribution, you can deduct the contributions (even if you do not itemize deductions) when completing your federal income tax return.

Contributions to the account must stop once you are enrolled in Medicare. However, you can keep the money in your account and use it pay for medical expenses tax-free.

Under guidelines implemented in the Patient Protection and Affordable Care Act, over-the-counter drugs may only be reimbursed if they have a prescription. If a policyholder uses an HSA to pay for items or services that aren't qualified medical expenses, the tax penalty is 20 percent of the HSA distribution. 

2013 HSA Individual High Deductible Health Plan (HDHP) Requirements


Individual Coverage

Family Coverage

Minimum Deductible



Maximum Out-Of-Pocket Expense1 



Maximum Contribution Limit2 



1Includes deductibles, copayments, etc., but not premiums.
2After an individual becomes enrolled in Medicare benefits, contributions, including catch-up contributions, cannot be made to the individual’s HSA account.