If you have a medical practice, then you’re well aware of the wide range of ways people pay for healthcare, from private insurance to out-of-pocket costs and more. Health reimbursement arrangements (HRAs) allow employers to provide insurance-like coverage for employees through a private savings account. Here are just some of the key facts to keep in mind regarding HRA insurance plans.

HRAs are Employer Funded

HRAs are a kind of employer-provided insurance intended to either replace or supplement traditional insurance. Patients with an HRA may or may not also have traditional insurance. If they do have traditional insurance, then you will usually bill that first. The patient can use the HRA for the remainder.

Employees Cannot Legally Fund HRA Accounts

Whatever money is available in the HRA is what’s available. If the HRA runs out of funds, then the patient will have to pay you out-of-pocket for the remainder.

HRAs are Different from HSAs (Healthcare Savings Accounts)

With HSA insurance plans, employees contribute tax-free income to a savings account, which they can then access as needed throughout the year. In contrast, the HRA does not count as income in any way, because the money never belongs to the employee. Where patients often use HSAs together with high-deductible plans and/or elective medical procedures, you’re more likely to see HRA insurance used together with standard insurance and non-elective medical needs.

Do you have patients with HRA insurance? Do you have questions about medical billing? Medical billing services like the ones offered through Advanced Reimbursement Systems can help bridge the gap between your medical practice and the many parties involved, including HRA insurance plans. To learn more information, set up a time to speak with one of our professionals in Phoenix, AZ or Wilmington, DE. Contact us today to book an appointment and get started.