Health Reimbursement Arrangements
With the impending changes to the healthcare market, employers are looking for ways to control the cost of their employee benefits while still offering a competitive benefits package. American Fidelity's Health Reimbursement Arrangement (HRA) program can give you the options you need to navigate the new healthcare landscape by providing you with an opportunity to stabilize the amount of money you provide to your employees' health plan, while still providing a valuable healthcare resource to your employees.
An HRA is an IRS-sanctioned program that allows an employer to set up accounts for their employees for the reimbursement of eligible out-of-pocket medical expenses. The account is completely funded by the employer. HRAs can be established in addition to a Section 125 Cafeteria plan (i.e., offered with a high-deductible health plan that is paid for all or in part with employee pre-tax contributions), but are not a part of the Section 125 Cafeteria Plan itself.
Advantages For The Employer
Four HRA Plans to Choose From
- Deductible HRA Plan
Covers out-of-pocket health plan deductibles, co-insurance and/or co-pays.
- Comprehensive HRA Plan
Covers all tax-qualified out-of-pocket medical expenses. Includes an HRA debit card.
- Limited Expense Plan
Available in conjunction with an HSA
- Retiree HRA Plan
Provides HRA benefits to retired employees
Multiple Contribution Options
American Fidelity can set up your HRA to be billed once claims have been incurred or you can choose to make contributions on an annual, quarterly, or monthly basis. This gives you the flexibility to choose the option that works best for your organization.