An HRA, Health Reimbursement Arrangement, is a plan that is solely funded by an employer that provides medical reimbursement benefits tax-free to the employee and the contributions are tax deductible for the employer.
Generally an HRA is designed by the employer in such a way that deductible and other out-of-pocket expenses are reimbursed up to a certain amount which is usually based on the employee's coverage level. Many employers and employees enjoy lower health insurance premiums due to higher deductibles being covered by the HRA. Premiums paid for health insurance are "lost" for those employees that did not utilize their health insurance unlike unused dollars in an HRA.
When it comes to your HRA Plan design the options are vast and there are some real solutions out there you may have not considered previously. Allow us to become your partner in designing a Plan that works for you and your employees.
Murfee Meadows will perform the necessary non-discrimination testing and prepare the annual Form 5500, if required. Because we are a full service TPA we can also coordinate claims with an FSA plan and ensure the Plan's COBRA requirements are met as well. This means that a termination notification will only need to be sent once!
Allow Murfee Meadows to assist you with your Plan design.