HRA

(HRA) Health Reimbursement Account

What is an HRA Account?

The (Health Reimbursement Account) is an employer-sponsored plan to reimburse a portion of you and your eligible family member’s out-of-pocket medical expenses, such as deductibles, coinsurance, and pharmacy expenses.

Your employer has designated a specific dollar amount to credit to the account (either monthly or annual contributions). You choose which out-of-pocket qualified medical expenses you would like to submit for reimbursement. 

Furthermore, unused account balances roll over to the following plan year, provided your employer continues to offer the program, and you remain enrolled in it.

HRA, QSEHRA & ICHRA Document Services

Everything needed to set up a Health Reimbursement Account, Qualified Small Employer Health Reimbursement Accounts and Individual Coverage Health Reimbursement Accounts is included in our services.

Reimbursement & Enrollment Form

Notice to Employees

How can I use my HRA dollars & Prepaid Benefits Card?

  • Routine health care: office visits, X-rays, and lab work.
  • Hospital expenses: room and board, and surgery.
  • The program is fully funded by your employer and is designed to help you pay for out-of-pocket medical expenses.

What Items are Covered with an HSA Plan?

  • Medications: prescription and over-the-counter (OTC) drugs when prescribed by a physician
  • Dental care: cleanings, fillings, crowns
  • Vision care: eye exams, glasses, contacts
  • Co-pays and coinsurance (the portions of health care bills paid by you)
  • Eligible over-the-counter (OTC) items2 such as First Aid Dressings and Supplies –bandages, rubbing alcohol
  • Contact Lens Solutions/Supplies
  • Diagnostic Products like thermometers, blood pressure monitors, cholesterol testing
  • Insulin and Diabetic Testing Supplies
  • Contact your Plan Administrator for more information or visit healthcare.gov for more details.

HSA Q&A

  • At the beginning of each plan year, your employer will notify you of the amount they will contribute to your plan for that plan year.
  • Yes. All eligible employees must enroll each year during the open enrollment period. Your employer will instruct you on how to complete enrollment.
  • Yes, as long as your dependent meets the definition of a dependent as defined by the IRS and is included in your employer’s plan.

Q & A

AWhat is QSEHRA?

  • Qualified Small Employer Health Reimbursement Arrangement – Small employers who don’t offer group health coverage to their employees can help employees pay for medical expenses through a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). If your employer offers you a QSEHRA, you can use it to help pay your household’s health care costs (like your monthly premium) for qualifying health coverage.

What is an ISHRA?

  • Individual Coverage Health Reimbursement Account – Starting in January 2020, employers can use the Individual Coverage which provides more flexibility for employers of all sizes. For example, a large company that provides group insurance for full-time employees may offer ICHRA benefits for part-time or seasonal employees.

    For thousands of employers, offering health benefits to their employees has been out of their company budget due to the high cost of insurance plans. That all changed in January 2020, when the Individual Coverage Health Reimbursement Arrangement (ICHRA) became available to businesses and organizations of all sizes.

  • With this type, employers fund a monthly allowance to reimburse ICHRA-eligible employees for qualified medical expenses and health insurance premiums. To qualify for reimbursements from an ICHRA, employees must be enrolled in an individual health insurance plan and cannot receive premium tax credits.

How does an ISHRA work?

  • As the name implies, ICHRA is based on reimbursing employees for insurance rather than buying it for them. At a high-level, the way ICHRA works is very simple:

    1. Employers design their plan, including defining which employees are eligible and establishing reimbursement limits
    2. Employees purchase the individual plans they want
    3. Employees submit claims for reimbursement
    4. Employers reimburse employees for valid claims

    Our Benefits Division, B3PA, manages all benefits administration plans. Please feel free to visit B3PA’s website for additional insurance information and benefit solutions for employers and brokers.

Questions or Need a Quote? Email or Call, we are Happy to Help!

Email solutions@hrserviceinc.com

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