Benefits to Offer Employees: Don’t Overlook an HRA!
Benefits to Offer Employees: The HRA
When looking at which benefits to offer employees, employers might overlook a Health Reimbursement Arrangement (HRA). However, HRAs are often a great fit for employers looking to deliver more value in their benefits package! Not only do they bring value, the variety of available HRAs means there’s one to fit the needs of any employer. Here we’ll cover what’s unique about HRAs and why they can be a fantastic addition to a benefits package.
For starters, a Traditional HRA is an account owned and funded by the employer that reimburses employees for qualified medical expenses. Employees are reimbursed tax-free up to a maximum dollar amount for a coverage period. Traditional HRAs can be offered alongside other benefit accounts, including FSAs. It’s one of the most versatile benefits to offer employees and the flexibility doesn’t stop there.
There are other types of HRAs that are designed to better fit the needs of specific employers. Those include:
- QSEHRA (Qualified Small Employer)
- Designed for employers with fewer than 50 full time employees that does not offer a group health plan to any employees
- ICHRA (Individual Coverage)*
- Allows employers to reimburse employees for qualified individual insurance or Medicare policies
- EBHRA (Excepted Benefit)*
- Designed for employers who offer major medical coverage and can reimburse dental, vision, and STLDI premiums and out-of-pocket medical expenses
*Employers can’t offer both an ICHRA and EBHRA to the same employee, nor can they offer a traditional group health plan and an ICHRA to same class of employee.
The array of HRA options allow employers to bring exceptional value to their employees that can help attract and retain high quality job candidates. Plus, employees using funds from an HRA tend to consider their healthcare purchases more carefully, helping themselves save money and lowering the total reimbursements provided by the employer.
BASIC has been administering benefits for decades and can help an employer design a plan that delivers exactly what they need – we know every organization is different! BASIC HRA Administration is available on our state-of-the-art benefits platform Consumer Driven Accounts (CDA), bringing the ultimate level of convenience when managing benefits. Easily integrate an HRA with other benefit accounts like FSA, Home Office Reimbursement, Wellness Rewards, and much more – all on the same platform!
For more information on BASIC HRA Administration, request a proposal today!
