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Health Reimbursement Arrangements (HRAs) are a type of healthcare benefit account owned and funded exclusively by employers. Employees do not pay into an HRA, but they can use this account to cover eligible healthcare expenses. By integrating an HRA with a major medical health plan, employers can often lower the health plan premium costs by increasing their deductible, out of pocket maximum, or increasing or removing certain copays, all while minimizing the impact to employees by giving them HRA money to help cover the increased deductible and out of pocket expenses or other before deductible services such as specialty prescription drug and specialist office visits.
Health Reimbursement Arrangement (HRA)
• Can be offered by employers of any size
• Employer contributions to the HRA are tax deductible to the employer and tax-free to the employee
• Employer must offer an integrated group major medical health plan
• Employees must be covered by the group major medical health plan to be eligible
• Employer sets the maximum amount that can be reimbursed
• Employer defines the eligible out-of-pocket healthcare expenses
• Certain HRA plan designs can allow for the use of a Benefits Debit Card (ex: an HRA that reimburses specialty office visits or prescription drugs that would commonly go to deductible only)
• Funds CANNOT be used to pay for any health insurance premiums
Interactive Medical Systems (IMS) can establish and administer your Health Reimbursement Arrangement plan. Our experienced staff, will help you construct an effective HRA plan design, and out industry leading claims processing and administrative systems will assure the efficient and accurate day-to-day processing of your HRA Plan.
Please contact us for a quote.