Health Reimbursement Arrangement (HRA)
A Health Reimbursement Arrangement (HRA) is an IRS-approved, employer-funded, tax-advantaged benefit plan that is used to reimburse employees’ qualified medical-related expenses. The rising cost of healthcare is a concern for most employers. With the addition of an HRA, employers can enhance and customize their benefit package while still achieving their overall corporate goal of lowering health benefit costs or capping costs at their current levels. A few of the customizable features of an HRA include contribution amounts, eligible expenses, whether funds roll over and when and how funds become available. An HRA gives employers more choice on how much to spend on benefits and how benefits are delivered. Employees have been asking for more choice, and employers need a break on benefit expenses. An HRA is a great way to meet employees’ needs and boost employers’ benefit packages.
Medical Expense Reimbursement Plan (MERP)
A Medical Expense Reimbursement Plan (MERP) is a type of HRA under which a business reimburses an employee for out-of-pocket medical expenses incurred by employees or their dependents. MERPs can be utilized for portions of health plan deductibles, coinsurance or copayments, as well as to cover the costs of qualified medical expenditures for uninsured health or accident expenses. MERPs are typically used in combination with high deductible plan designs, giving the employer flexibility to create any plan design they wish so it aligns with their overall benefit strategy. Due to health insurance costs rising at an exponential rate, implementing this program is a great strategy to lower the cost of healthcare without reducing coverage for employees.
Qualified Small Employer HRA (QSEHRA)
In 2017 the IRS approved a new type of HRA known as the Qualified Small Employer HRA (QSEHRA). This plan allows employer groups with under 50 employees, with no medical plan offering, to provide an HRA option to their employees to help offset healthcare costs! Unlike traditional HRA or FSA plans, QSEHRAs can be set up to reimbursement employees for plan premiums. Employers eligible for this plan must be covered by a medical policy that meets the minimum coverage guidelines required by the Affordable Care Act. Limits to the QSEHRA may change each every; however, in 2019 businesses can offer up to $429.17 per month for single employee coverage or $870.83 per month for family coverage. Employees may use these funds to purchase insurance, prescriptions or even to reimbursement copays and deductions.
Frequently Asked Questions
Can the business owner participate in the plan?
In most cases, the answer will be yes, as long as the owner is considered a W2 employee.
What types of expenses are eligible under the plan?
In general, 213D expenses are eligible. Some of these include prescription medications, copays, insurance premiums for dental and vision, as well as health care premiums.
Do we need a plan document?
A Summary Plan Description must be prepared to remain in compliance with IRS guidelines.
The FBA Difference
The Benefits Card is a convenient option to offer participants to reduce out-of-pocket costs.
Our IT Department has the ability to accept and process data through a multitude of methods.
Administration of HRA
FBA works hand-in-hand with your company to provide services your employees will come to depend on for years.
Our clients receive education and training sessions for employees and benefits staff.
You will have a dedicated Benefits Team to administer all account aspects for the duration of the contract.
FBA has partnered with FSAStore and HSAStore, the one-stop shop for all things FSA and HSA!
We provide customized communication materials to maximize participant opt in.
Our Secure File Transfer Protocol website and mobile application makes managing benefits easy!
Hear It For Yourself
“It's so much easier to use our Flex Spending since FBA started to work with us. We love the turnaround time for claims, the card is so easy to use and not having to validate every single card swipe has been AWESOME!”L. McKenzie
“You guys have been amazing from the get-go. I truly do appreciate all that you are doing to make business like ours succeed!”J. Bollen
“Thank you so much for all of your help, you and your team are amazing!”J. Corrigan
“I want to thank you so much for all the help you have extended to myself and my husband. It was so nice to work with someone who cares about doing their job correctly and about offering the best service they can to their clients. I wish you the best in all that comes your way.”T. Johnson
“I have so enjoyed working with you and completing this last step in the process. You represent the gold standard of customer service and it is profoundly appreciated.”J. Hunter
“You are the BEST to work with!””B. Snead
“The mobile app makes it so easy to manage my account and quickly view my balance, submit a claim, and review my history.”G. Fitzpatrick
“Great security features! I wish other financial institutions had services like these!”O. Castillo
“I cannot thank you enough for your time and especially, for making the drive to spend time with each of my employees. Your kind, generous attitude was most helpful when speaking about our new FSA/HSA vendor. I know employees appreciated being able to meet with you 1-on-1.”A. Stuart
“The transition of our benefit plans was seamless. We were able to communicate directly with our Benefits Team throughout the duration and never had to hassle going through a phone tree.”J. Haney