Like most every other industry, the timber business has been slower than usual this year. That's why Wayne Ragland was alarmed when he found out that his health insurance costs were increasing by 50 percent.

"We couldn't handle that large of an increase," says Ragland, owner of Gainer and Ragland, a timber brokerage business in Hazlehurst, Ga.

Instead of accepting the new rates, Ragland looked for options. By establishing a medical savings account, or MSA, Ragland's small business saved almost $45,000 a year, compared to their costs if they'd stayed with their old plan.

"I had heard of an MSA, but I didn't know how to get into one," says Ragland. "We asked a lot of questions, and had it explained to us over and over again. After a call to NFIB Health Benefits, we decided that MSAs were the best option."

Gainer & Ragland, Inc. was able to save $45,000 annually by using a Fortis Medical Savings Account through the NFIB Health Benefits Program.

Health Reimbursement Arrangement Client

Jim Barry wondered how he would cover the 25 percent spike predicted by his former health coverage plan.

"I was afraid I'd have to raise prices for my customers to cover the cost of health insurance for my employees," says Barry, who owns Wausau, Wis.-based Computer Network Services.

Barry established a health reimbursement arrangement, or HRA, at his nine-person network services firm. Though relatively new, more businesses are beginning to use HRAs.

"When you talk about changing someone's health insurance, then employees will be nervous at first," says Barry. "But once they understand how it works, they're pleased that they get the same coverage with less taken out of their checks."