As out-of-pocket expenses for employees continue to rise, HRAs provide a great opportunity for employers to help soften the blow. A Health Reimbursement Arrangement, also known as an HRA, is a reimbursement account that is funded by an employer and IRS-approved. They are a great way for employers to receive tax advantages while helping lessen the burden on their employees’ health costs. Here are a few interesting facts every employer should know about HRA insurance and the benefits it can provide:

HRA Insurance is Funded Solely By the Employer

While other types of insurances like FSA and HSA allow employees to contribute their money through payroll, an HRA is funded only by the employer. Since employers are in control, they get to determine how they want to handle certain rules of the HRA; for example, what types of expenses are eligible for reimbursement, what happens to funds at the end of the year, how much is allocated to employees, and more.

It’s Easy to Set Up and Manage

HRA insurance, unlike health insurance plans that use difficult language, is relatively easy to understand. This helps make set up quick since it’s essentially a business account for health care. This saves time for both employers and their staff.

HRAs are Extremely Flexible

HRA plans give employers a wide range of control. They can determine when employees become eligible, who is covered under their plan, and if they can retain benefits after termination or during a leave of absence. HRA plans also allow for part-time employees and seasonal workers to be covered.

HRAs are Exempt from State Insurance Rules

With traditional group health insurance plans, there is a state-mandated amount of coverage that must be included. This is one of the top factors driving up the cost of health insurance. HRAs are exempt from these requirements.

HRAs are Notional and Tax-Deductible

This means that none of the funds employers put into the account are paid out until employees follow the rules set up by the employer to receive reimbursement. Because of this, there are no minimum contribution requirements, and pre-funding is not necessary, which is a great benefit for many small businesses.

The trend for employer-sponsored health plans to include an HRA is on the rise, and for good reason. Although setting up an account is pretty straightforward, there are important steps like determining plan rules and going over documents. At Advanced Reimbursement Solutions, we can help get you started and streamline the process. Contact us today to speak with one of our team members in Wilmington or Phoenix.

Whether you are a doctor or a patient, navigating the world of health insurance is by no means an easy feat. There’s a lot to review and a lot to understand. HRA insurance adds yet another factor to the mix. Commonly referred to as a health reimbursement arrangement, this is a system that can offset your out-of-pocket spending in multiple areas. Following are some things you need to know about HRA insurance, including the many benefits it can provide.

HRA Insurance Can Cover a Number of Qualified Medical Expenses

An HRA is a health reimbursement account that’s funded by a third party. This is usually a consistent, annual contribution that can be used to pay for things like deductibles and co-pays. HRAs can be paired with just about any health insurance plan to make using this coverage far less costly to the policyholder. Not only does HRA insurance offset out-of-pocket spending for the doctor, but it also gives consumers the ability to consider a much broader range of plan types.

How HRAs Work

With an HRA, a specific amount of money is set aside for a patient to use for qualified medical expenses each year. The primary difference between an HRA and most other health spending accounts is that the third party will be the sole party funding the HRA. No other parties will be authorized to make HRA contributions.

Every HRA comes with an Explanation of Benefits or EOB that outlines the terms and conditions of this agreement. For instance, the EOB will state whether or not policyholders will maintain access to their HRA benefits. It will also state the duration of this continued access.

Additional Considerations About HRA Insurance

As a healthcare provider, you owe it to yourself to do everything you can to make sure that your patients are your top priority. Dealing with the insurance and financial aspect of your practice should not have to be stressful for you. This is where the team at Advanced Reimbursement Solutions can help. We are experts concerning all things HRA insurance, and we can help you take your practice to the next level, which will ultimately benefit both you and your patients.

Advanced Reimbursement Solutions has locations in Wilmington and Phoenix. Contact us today to learn more about our specialized process!