Health Reimbursement Arrangements (HRA) and Unallocated Medical Reimbursement Plans (UMR)
HRA/UMR is a consumer directed, tax-free health care reimbursement arrangement established and funded by the employer. The employee uses the funds, tax-free, to pay for qualified out-of-pocket medical expenses that the employer deems eligible when setting up the plan.
ICHRA (Individual Coverage HRA) allows all businesses, regardless of size, to reimburse or facilitate payment on behalf of employees at a set level for their health insurance, as well as other qualified health care expenses. ICHRAs are also tax-advantaged, exempt from both payroll taxes and income taxes.
QSEHRA (Qualified Small Employer HRA) allows an employer to offer health care coverage at a small company (50 or fewer full-time employees) replacing a group health plan with a maximum yearly limit set by the IRS
EBHRA (Excepted Benefits HRA) allows an employer to offer accounts to compliment a group insurance plan to cover dental, vision care, long-term care, COBRA premiums, or other non –primary care costs up to the maximum amount set by the IRS.
Employers use the plan to reimburse the employee for eligible out-of-pocket expenses. These plans are usually tied to a high deductible health plan or high hospital deductible plan, or they may be used in place of a fully insured dental plan.
Absolutely! The only requirement is that the Plan Document defines which plan pays claims first. You can be creative when setting up the plan and the reimbursements for which you would like to pay.
An HRA is often offered in conjunction with a high-deductible medical plan, which means the employer should save more than enough on premiums to offset HRA contributions. HRAs are simple, flexible in design and easily administered by Advanced Benefit Strategies.
Businesses of all sizes and industries. All companies who want to offer quality health care benefits while keeping costs down.