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Health Reimbursement Arrangements (HRAs)

Health Reimbursement Arrangements - At A Glance

A Health Reimbursement Arrangement (HRA) is an employer funded account used to help employees pay for eligible medical expenses. The employer is able to custom design the plan to fit the needs of its employees in conjunction with its benefit package. Sometimes employers will offer a high-deductible health plan in order to save on premium dollars, and then fund an HRA account for each employee to help them reach their deductible.

  • Customized enrollment and communication materials
  • Education and Training
  • 24/7 Secure employee online account access with learning tools
  • Plan document and SPD preparation and updates
  • Dedicated Account Manager
  • Employer Reimbursement Cycle Options
  • Direct Deposit
  • Detailed Reporting
  • FBA Benefits Card Linked to FSA account and HRA account

 

 

Qualified Small Employer HRA (QSEHRA)

In 2017, the IRS approved a new type of HRA, known as the Qualfied Small Employer Health Reimbursement Arrangement, or QSEHRA.  This allows employer groups with under 50 employees, with no medical plan offering, to provide an HRA option for their employees to help offset out of pocket costs, while providing a tax benefit to employers at the same time.  Employees must be covered by a medical policy that meets the minimum essential coverage guidelines, as required by the Affordable Care Act.  Unlike traditional HRA or FSA plans, the QSEHRA can be set up to reimburse employees for plan premiums.

Limits may change each year; however, in 2018, businesses can offer up to $420.83 per month for single employee coverage and $854.16 per month for family coverage.  Employees uses these funds to purchase insurance, reimburse copays or deductions, prescriptions and other allowable 213D expenses.

Our team can assist you in determining if the QSEHRA is the right solution for your business.  From plan design discussions to plan document preparation, our staff will work with you to provide a solution that meets your employees' needs while remaining compliant with IRS guidelines. 

Common 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.