HRA Basic Quiz

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1) Employees who are also "Owners" (e.g. sole proprietors, partners, or S-Corp shareholders that own >2% of the company's shares) can participate in a Health Reimbursement Arrangement (HRA).*

True
False

2) An employer mandate participation in the company-sponsored health plan as an eligibility requirement.*

True
False

3) The employer can select which out-of-pocket medical expenses the HRA will reimburse, as long as these expenses are listed in IRC Section 213 (d).*

True
False

4) An HRA can be implemented with any employer-sponsored group health plan.*

True
False

5) HRAs are an eligible COBRA benefit.*

True
False

6) Employers can have leftover funds rollover into the next plan year or elect a “use it or lose it” option.*

True
False

7) Plan Documents and Summary Plan Description are required by the IRS regulations governing HRAs.*

True
False

8) An employer can establish dual-option health plans and attach the HRA to only one of the offered plans, as long as employees are eligible to elect either health plan option.*

True
False

9) Employees can cash-out leftover funds as long as they pay a 10% penalty.*

True
False

10) Claims substantiation is required. The funds paid out are considered a business expense once the dollars are paid out to the employees.*

True
False

11) The funds must be 100% employer funded. However, employees can elect to match the employer’s contribution.*

True
False

12) Employees are permitted to “double dip” and be reimbursed for the same eligible expenses from their FSA, HSA, and HRA?*

True
False

13) If offered by the employer, employees can participate in an HRA, FSA, and HSA concurrently without restrictions.*

True
False

14) An employer can require employees to pay a specific dollar amount first before the HRA reimburses their expenses.*

True
False

HRA Basic Quiz

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