Health Reimbursement Account (HRA)

0aa85af685a5a2a1557b96019cc92ee6.jpg?ixlib=rb 1.1

Give your employees the control and flexibility they need to combat the rising costs of healthcare.

Health reimbursement accounts (HRAs) are employer-funded tax-advantaged accounts, designed to help employees save money on the high costs associated with healthcare. By setting aside a specific amount of pre-tax dollars in an HRA, employers help their employees offset expensive medical bills and provide them with an “allowance” to use should an expense occur.

Incorporating the benefits of both flexible spending accounts (FSAs) and health savings accounts (HSAs), HRAs combine the control and cost-saving tools that employers are seeking with the flexibility and protection that their employees need.

How does it work?

When an employer chooses to provide an HRA, they allocate funds into individual reimbursement accounts for their employees. They will also define “eligible” expenses that the employee can pay with these funds (e.g. specified out-of-pocket expenses such as deductibles or copays). This is a notional account, meaning funds are only pulled from the employer when they are used by the employee.

HRAs help employers save money by migrating from first-dollar coverage to a high-deductible health plan (HDHP) without having to increase their employees’ out-of-pocket exposure. Even better, any administrative fees associated with the HRA, along with the funds reimbursed to employees, are both tax-deductible to the employer.

Items to note:

  • An employee must be enrolled in their employer-sponsored medical plan to participate in an HRA.

  • An HRA plan is funded solely by the employer.

  • Some HRA plans allow for funds to be rolled over from year to year, preventing employees from losing their unspent dollars at the end of the plan year. The employer can opt in or out of this option when designing their plan.

Maximize the Value of Your Employee Benefits Program

Your employees have unique needs, based on a wide range of individual circumstances. Offering a flexible spending account (FSA) in addition to an HRA is an easy way to accommodate their specific needs, while giving them more flexibility and control over their health and finances.

Through an FSA, employees can make contributions on their own behalf and access both accounts through just one MyAmeriflex Card. As an employer, you’ll experience greater tax savings, because your employees’ FSA contributions reduce their taxable income.

LEARN MORE

Multiple, easy-to-use options for access and account management of your employees’ HRA funds.

Quickly and conveniently pay for eligible expenses, without the hassle of filing a manual claim. With the MyAmeriflex Card, participants can access their HRA funds instantly when they swipe their card at eligible merchants. In most cases, this eliminates the hassle of having to verify the eligibility of an expense later on.

Convenience and award winning customer-service – right at your fingertips! With the MyAmeriflex Mobile App, participants can access their account from anywhere. Check balances, file a claim, or check on the status of a reimbursement, all from their mobile phone.

Account management just got easier. By logging into MyAmeriflex, participants can gain access to resources aimed at helping them maximize the value of their HRA plan. In addition to managing all aspects of their accounts, they can also access interactive how-to’s, spending calculators, and more.

We Make Benefits Easy.

Let us show you how. Learn more about our products and services today.