Health Reimbursement Arrangements
Overview
Create an employer-funded HRA that complements your company’s benefit program. From unrestricted reimbursement options to plans that reimburse only specific expenses, HRAs provide flexibility and offer you creative ways to reduce your overhead.
Design Options
Gap Plan
This type of plan design reimburses deductible expenses under a health insurance plan, thereby filling the “gap” between employees’ out-of-pocket expenses and their insurance coverage.
Unrestricted Plan
Like the name suggests, an unrestricted HRA design has no restrictions. This plan reimburses the same expenses as a Health FSA, including co-pays, glasses, orthodontia and prescriptions.
Restricted Plan
Under this design option, reimbursement is limited or restricted to specific expenses, such as vision, dental or prescription drug copays.
Refill Model
With a refill model, the benefit maximum remains constant and is replenished on an annual basis.
Rollover Model
A rollover model means unused account balances/unreimbursed expenses rollover and can be spent/ reimbursed in future years or as benefit dollars become available.
Reimbursement Options
Because HRAs are completely employer-funded, you decide what happens to unused funds at the end of the plan year. Choose from two options.
Refill Option
With a refill option, you can set up your HRA plan so that accounts are replenished on an annual basis. This means that unused funds do not roll over for employees, and whatever is left over goes back to the employer at the end of the plan year.
Rollover Option
A rollover allows unused balances to roll over year-to-year. With this option, employees can opt to save their balances and use their plan for future expenses.
