HRAFlex

The IRS released 2024 contribution limits for medical flexible spending accounts (medical FSAs), commuter benefits, and more as part of Revenue Procedure 2023-24. These limits undergo annual adjustments to account for inflation. 

View full comparison breakdown here!

A Health Reimbursement Arrangement (HRA) is an employer-funded account designed to repay unreimbursed medical expenses incurred by employees. With HRA, employers no longer need to pre-fund the entire account; instead, they can simply reimburse employees as they submit claims. This innovative approach allows employers to save more as employees spend less on medical expenses.

A Health Reimbursement Arrangement (HRA) is a smart way to motivate and retain current employees, assist retirees, and help reduce healthcare costs. With a FlexHRA, your company determines methods to fill in benefit gaps, using a strategy of tax-free reimbursements. Employers can establish limits to protect the company budget, while typically saving thousands of dollars in insurance premium costs. HRAFlex is flexible and is designed to reimburse medical expenses such as deductibles, coinsurance, copay’s, or other uninsured expenses including dental, vision or even prescriptions drugs on a tax free basis.

HRAFlex offers THREE basic types of HRAs: 

1. Incentive HRA creates incentive for employees to participate in (For example: a health risk assessment or a smoking cessation or weight management program where HRA funds are contributed as credits are earned)
2. Post Deductible HRA strategies offer an HRA designed to supplement HDHP qualified insurance plans typically referred to as HRA qualified plans
3. Traditional High Deductible Health Plan HRA complements traditional PPO and HMO Insurance Plans. Traditional HRAs are designed to offset out-of-pocket healthcare costs while reducing healthcare premiums.

HRAFlex is good for your company’s bottom line because it reduces healthcare premium costs by offering tax free reimbursements to your employees while saving thousands of dollars.

In 2002, the IRS issued important guidance surrounding IRC 105, now known as Health Reimbursement Arrangements (HRA). This ruling emphasizes the need for proper plan documentation and the application of specific non-discrimination rules. Here are some key points to consider:

• Companies of any size can establish a tax-free HRA program
• An HRA grants employers control over the expenses eligible for reimbursement, providing flexibility to design a benefit plan that caters to employees' needs
• Employers have the option to use an HRA alongside or instead of a traditionally insured group medical plan
• An HRA can reimburse the same expenses covered by a Section 125 Medical Flexible Spending Account (FSA)

By implementing our HRA program, employers can reap numerous benefits that positively impact both their budget and employees' well-being:

1. Reduced benefit costs: Our HRA program saves employers thousands of dollars in premium costs annually
2. Tax-free reimbursements: All HRA reimbursements are tax-free benefits paid to employees for qualified medical expenses
3. Specialized customer service: Our dedicated team provides HRA-specific customer service and comprehensive claim support
4. Streamlined claims processing: We process claims daily and offer direct deposit for quick and convenient reimbursements
5. Online account summary dashboard: Employers can access an intuitive online dashboard for easy administration and oversight

• Qualified Medical Expenses for Employees and their Families
• Individual Health Plan Premium Reimbursement
• Single Expense Reimbursement (e.g., Dental or Vision)
• Insurance Deductible Replacement
• Hybrid Designs (Using multiple strategies to capture the best of different options)

HRAFlex empowers employers to design a benefit plan tailored to their specific requirements while maintaining cost control. By choosing our program, you can:

• Reduce benefit costs and embrace the Consumer Driven Health Care approach
• Accommodate the needs of a diverse employee group through a dual-choice insurance strategy
• Establish a long-term strategy that significantly reduces benefit renewals
• Create customized reimbursements each year to bridge the gaps in your selected insurance product