Why HRAs Should Be in Your Benefits Plan
A Health Reimbursement Arrangement (HRA) allows employers to offer company-provided health care benefits while controlling company costs.
HRAs provide many advantages to employers that address current realities:
- Expenses only accrue when employees access care
- Premium costs are reduced for high-deductible medical plans
- Funds are exempted from employer’s payroll taxes, as well as Social Security
- Employees become more aware of health care costs and how to best to use funds, creating a higher level of benefits engagement
Claims and Reimbursement Made Easy
ConnectYourCare’s exclusive ClaimsAlly technology substantially improves the participant claims experience and enhances the HRA solution by optimizing health plan claims feeds, which dramatically improves the speed and ease of the employee’s payment card-swipe process. Best of all: it’s included at no additional charge.
Superior HRA Flexibility & Ease of Use
Our HRA solution offers superior account technology developed with a focus on providing solutions customized to fit your company’s needs.
With a ConnectYourCare HRA, employers control the following plan design features:
Decide which types of expenses are covered for your employee population. Usually, employers choose to cover some combination of: medical only, medical and prescription, or medical and dental.
Types of HRAs
- General Purpose: Covers all IRS-approved health care expenses. This type of HRA is sometimes referred to as a 213(d) HRA.
- Medical and Prescription: This type of HRA covers only medical and prescription expenses.
- Medical-Only: The medical-only HRA covers medical expenses.
- Member Pay First HRA: For this type of HRA, employees must meet an initial deductible prior to having access to HRA funds. This type of HRA is sometimes referred to as a post-deductible or an out-of-pocket HRA.
- Limited Purpose HRA: This type of HRA, restricted to vision and dental expenses, is often coupled with a health savings account (HSA).
- Retirement HRA: Sometimes referred to as an RMSA, this account type is restricted to post-retirement benefits and remains dormant until the employee becomes eligible.
Decide whether HRA funds are forfeited back your company at the end of the plan year, or whether funds “roll over” and remain in the account year over year.
Employers can limit the rollover to either a dollar amount or a percentage of the total account balance.
An HRA may feature uniform coverage, or have funds deposited throughout the year. If the account has uniform coverage, the full annual election amount is available on the first day of the plan year.
Alternately, a “fund as you go” HRA will make funds available to employees on a specific, employer-defined contribution schedule.
- Retirement Portability: Employers can set the amount of HRA funds available at the end of the year that can pour over to a retirement account. The pour over amount is set as a percentage of funds available at the end of the plan year.
- Termination Portability: If an HRA is designed to be portable, then the account will stay active after employment ends and even into retirement.
Convenience Employees Love
Get Help Educating Employees
We know that communication is an integral aspect of enrollment and ensuring employees are educated about their health account options. That’s why we created 360° Connect – a strategic program designed to simplify things for you, engage your employees, and drive account enrollment through uniquely tailored communication services.
Throughout the lifecycle of the program, we constantly monitor activities to understand what is happening and where improvements can be made to ensure your employees are making the right choices for themselves and their families.