Health Reimbursement Arrangements

Health Reimbursement Arrangements are employer-designed and employer-funded plans that reimburse employees for out-of-pocket medical expenses not covered by a health insurance plan. HRAs are a major part of the growing trend toward greater consumer health care responsibility.

How employers use them

A BeneSkill HRA can be used in conjunction with a high-deductible health plan to curb premium costs, or with a Flexible Spending Account to help cover out-of-pocket expenses. If the HRA is used to cover medical expenses, it must follow applicable rules requiring integration with a medical plan.

The design advantage

Because the employer funds and designs the account, you control which expenses are eligible, how much is available, and whether unused balances roll forward. That makes an HRA one of the few levers where you can buy down a deductible increase without handing the savings straight back to the carrier.

Unused funds are not a windfall for employees who never claim them — they stay with the employer, which is the structural difference from an FSA.

Excepted Benefit HRAs

Non-integrated and versatile, EBHRAs cover employees enrolled under an employer-sponsored group health plan. This HRA type spans expenses such as copays, deductibles, and dental and vision coverage.

What’s included

• Plan design and eligibility rules
• Integration review with your medical plan
• Substantiation and claims adjudication
• Rollover and forfeiture design
• Participant portal and mobile access
• Employer funding reports
• Coordination with FSA and HSA accounts
• Required plan documentation