Health Reimbursement Arrangement
Health Reimbursement Arrangements (HRAs) can be complex, confusing and overwhelming. The team at B3PA is dedicated to making your HRA work for both employer and employee. To summarize, the HRA is an employer-sponsored plan that can be used to reimburse a portion of employees’ out-of-pocket medical expenses. The employer specifies a designated dollar amount to credit to the account monthly or annually. The employee decides which out-of-pocket qualifying medical expenses they would like to submit for reimbursement. At the end of the plan year, any unused funding will be rolled over to the next plan year – should the employer continue to offer the program.
Each new HRA client will have a one-on-one consultation with a knowledgeable B3PA representative to ensure the proposed HRA is as simple, efficient and valuable to the participants as possible
A variety of HRA designs and features are available; B3PA will fully utilize the capabilities of its systems to accommodate as many options as possible
The Qualified Small Employer Heath Reimbursement Arrangement (QSEHRA), which allows for the reimbursement of health insurance premiums along with medical expenses is a B3PA option for employers with less than 50 employees
B3PA will help its HRA employers navigate through the ever-changing regulations surrounding benefits such as: Affordable Care Act, Tax Cuts and Jobs Act, etc. We are dedicated to only operating compliant HRA plan designs
The benefit card will be an option for certain HRA designs. For some designs, however, the card may become more of a burden than an advantage
Who can add money to an employee’s HRA?
The employer puts money into an HRA and the employee chooses how those healthcare dollars are spent.
How does an employee know the amount contributed to their HRA each plan year?
At the beginning of each plan year, the employer will notify the employee of the dollar amount contributed to the HRA for that plan year.
Do employees need to enroll each plan period?
Yes. During the open enrollment period, every eligible employee must enroll. The employer will instruct the necessary steps to complete the enrollment.
Can employees be reimbursed for their dependents’ medical expenses?
As long as the dependent meets the definition of a dependent, as defined by the IRS, entirely and is included in the employer’s plan, the answer is yes.
HRA Dollars and the Prepaid Benefits Card can be used to pay for expenses like:
Routine Health Care. Including x-rays, lab work, and office visits.
Hospital Expenses. Including surgery and room and board.
Medications. Including prescriptions. Over-the-counter (OTC) medication may also qualify when prescribed by a physician.
Dental Care. Including crowns, fillings, and routine cleanings.
Vision Care. Including glasses, contacts, contact lens solutions, and routine eye exams.
Coinsurance & Copays. Covering the portions paid by the employee.
Eligible OTC Items. Including First Aid Dressings and Supplies. The list of eligible OTC items has been updated. Contact your Plan Administrator for more information or visit www.irs.gov for details.
Insulin & Diabetic Testing Supplies.