Health Reimbursement Accounts (HRA)

Health Reimbursement Accounts: HRA, Employee Benefits Compensation Plan, Indianapolis, Indiana

Russell Benefit Consulting, centrally located in Indianapolis, provides Employee Benefit packages to businesses and industries of all types and sizes throughout Indiana and the US. Health Insurance is the single most important benefit to protect the financial wellbeing of your employees.

A number of options now exist as alternatives to traditional, fully-funded medical plans that can provide greater flexibility for the insured to make medical decisions as well as offering potential cost savings for the employer.

Health Reimbursement Arrangements: A Small Gamble with Potential for Big Returns

Health Reimbursement Accounts (HRA), also known as Health Reimbursement Arrangements, are viable, cost-saving health insurance programs for midsized companies with 50 -75 employees, and those that experience significant growth in their employee demographics.

HRAs are a way for an employer to get into the self funding arena without the potential risk of a fully self-funded program.

HRAs are a bit of a gamble, but with a high potential of return. Employers buy a high deductible plan with significantly lower premiums in anticipation that not all employees will reach their deductibles. Any monies saved are then applied to a fund used to reimburse employees for eligible expenses not covered by the policy, such as co-pays, deductibles, or co-insurance.

HRAs: Repay Employee Expenses via Employer-Controlled Fund

The employer has control over how the fund is used, and any funds remaining at the end of a calendar year return to the employer. This is known as the "Use It or Lose It" rule. Funds are not vested to employees and are not transportable if they leave the company.

By setting aside pre-tax money from their pay into the HRA, your employees basically repay themselves for eligible expenses incurred during the calendar year that are not covered by insurance. Because contributions are deducted from their pay before federal income, state income, and Social Security taxes have been withheld, employees save on taxes and bring home more in their paychecks.

Eligible Expenses

Below are just a few examples of out-of-pocket expenses eligible for reimbursement from a Health Reimbursement Account. This account may be used to cover health expenses that are not eligible for reimbursement under the health insurance plan, as determined by the employer, such as:

Alcohol abuse treatment Ambulance and EMT services Co-pays, deductibles, or co-insurance not covered by insurance Drug addiction treatment Prescription eyeglasses Eye surgery

Hearing aids/exams Lab fees Nursing services Smoking cessation programs Weight-loss programs to treat existing disease Wheelchairs, crutches, etc. X-rays

Please note: basic insurance coverage premiums are not eligible for reimbursement under an HRA plan.

Ineligible Expenses

Employee Benefits Administrator Groups

To remove the burden and cost from employers, we also administer these programs. Learn more at Employee Benefits Management / Administration

Learn More About Health / Medical Insurance

Fully-Funded Plans
Self-Funded Plans
Health Savings Accounts
Flexible Spending Accounts