Health Reimbursement Arrangements, also called health reimbursement accounts or CRH, is a type of health plan used by employers to reimburse employees for medical expenses. CRH are both similar and different to other popular medical reimbursement plans such as health savings accounts (HSA) and flexible spending accounts (FSA). In this article, we'll cover what a HRA is and how an HRA works. 
What is a Health reimbursement arrangement (HRA)?
a health reimbursement arrangement (HRA) is a health plan sponsored by the employer reimburses employees tax free medical expenses for eligible out-of-pocket, there including individual health insurance premiums.
CRH is a simple tool used by employers to reimburse employees for medical expenses, and yet, because of their uses and new reforms, it is easy to be confused about how HRA works today
How does an HRA
Here is a simple illustration of how an HRA works :. ?
-
society defines HRA contribution amounts and designs the plan.
-
employees incur medical expenses.
-
Employees submit a refund request (generally a TPA HRA ).
-
Once the application is approved, the company will reimburse employees for expenses approved by the payroll tax free, by check or deposit direct.
What types of medical expenses HRAs Can Repay
First, the IRS defines what medical expenses and health insurance? Premiums can be paid ( see IRS publication 502 ). Examples include co-pays for doctor visits, prescriptions, dental care, eyeglasses and individual health insurance.
Second, in what the IRS says is refundable, an employer may restrict the categories below. For example, an employer may establish an HRA to reimburse only out of pocket medical expenses not covered by their group health plan. In the design of the HRA, employers must also take care to meet new health reform rules HRA.
What are the health reform rules New HRA?
Before 2014, HRA reimbursement was a very flexible tool for medical expenses. However, because of the new health reform rules, employers are more limited in how they can use CRH.
To summarize, because CRH are considered a type of group health plan, they must comply with the new ban on annual limits. Due to these new rules, sometimes called the "market reforms," the popular stand-alone HRA is a true plan . However, some CRH uses are exempt reforms market, and can still be used today
the three main "types" of CRH available today are :.
-
integrated HRA :. an HRA integrated with a group health insurance plan
-
one independent person HRA. an HRA offered as a standalone benefit (not integrated with the group health insurance) the HRA is often designed to reimburse individual health insurance premiums and other medical expenses out of pocket (Note: CRH autonomous with two or more participants are no longer compliant.).
-
retiree HRA :. An HRA designed to reimburse employees only after retirement
learn more about how HRAs can be used.
Alternatives to CRH
If your company has used a stand-alone HRA in the past, or if you're looking to pay health insurance premiums for employees, a solution is health repayment Plan (HRP) .
reimbursement of health plan is a type of medical reimbursement plan designed for individual reimbursement of health insurance
Similar CRH for stand-alone, Health repayment plans :.
-
offers employers a way to repay the tax-free insurance premiums
-
Allow the employer to have full control of the cost of health benefits, and
-
give employees the choice on their health.
Furthermore, as an HRA, a medical reimbursement plan allows the advertising business and offer health benefits to recruit and retain high-quality talent.
Conclusion
CRH are a common way for employers to offer reimbursement of medical expenses. However, it is 2015 and the rules have changed. We hope this article has given you an overview of how HRAs are working today and other ways to pay employees for individual health insurance.
Additional questions on how HRAs work? Download this free guide on CRH, or leave a comment below.
0 Komentar