Health Reimbursement Arrangements (HRAs)
With a Health Reimbursement Arrangement (HRA), your client contributes tax-deductible money to an account that their employees use to be reimbursed for uninsured medical expenses. However, unlike an FSA, unused HRA balances can be carried forward from year to year, depending on your client’s strategy. With an HRA, the company may restrict reimbursements to certain expenses, such as prescription drug co-pays, vision, dental, or deductible expenses.
Here at P&A, we have the experience and flexibility to help companies of all shapes and sizes with HRAs. We will work with you and your client to listen to ideas, identify goals, and then develop a creative solution.
There are several different kinds of HRAs available:
HRA Gap Plan
The gap design complements high-deductible insurance products by paying only for items eligible under the insurance plan, thereby filling the “gap” between the employees’ out-of-pocket expenses and the insurance coverage.
Coverage under this HRA is limited or restricted to specific expenses such as deductible expenses or prescription drug co-payments.
Unrestricted Rollover HRA
This HRA pays for all medical expenses not covered by insurance, including but not limited to insurance co-payments and deductibles, vision and dental expenses, and/or prescription drug co-payments. Unused account balances are rolled over and can be used in future years.
Unrestricted Refill HRA
A Refill HRA allows the benefit maximum to remain constant and replenished on an annual basis. For example, let’s say your client puts $500 in its employees’ Unrestricted Refill HRA. Regardless of any remaining account balance at the end of the year, this HRA will refill to the original $500 balance at the beginning of the new plan year.
To learn more about HRAs for your client, request a proposal to discuss your needs.