Health Reimbursement Arrangements (HRA) Administration
An HRA is a medical reimbursement plan that is paid for solely by the employer and not funded through salary reduction elections of the employee. When establishing the HRA (and then on an annual basis), the employer determines the maximum medical deduction amount per employee. Each employee receives the same amount.
Under an HRA plan, the employer reimburses the employee for qualified medical care expenses. The HRA provides reimbursement up to the maximum dollar amount established by the business for the coverage period and any unused portion is carried forward to the next coverage period.
HRA reimbursements are provided to current as well as former employees (including retired and terminated employees), their spouses and dependents and the spouses and dependents of deceased employees.
If a qualified medical care expense has been reimbursed or is reimbursable under any other accident or health plan, the expense may not be reimbursed from an FSA or HRA plan. If coverage is provided under both an HRA and an FSA for the same medical care expenses, amounts available under an HRA must be exhausted before reimbursements may be made from the FSA. However, if a medical expense is not covered under an HRA, then a reimbursement from an FSA for the medical expense will not violate this rule.
Under no circumstance may an employee be reimbursed for a medical expense by both an FSA and an HRA. However, consistent with the above "order" rule, before an FSA plan year begins, the plan document for the HRA may specify that coverage under the HRA is available only after expenses exceeding the dollar amount of the FSA have been paid.
We strongly urge you to get professional assistance to determine which medical health plan would benefit your business. If you have questions regarding HRA's, FSA's or other related questions, please contact us.
HRA Services
American Benefit Services offers the following services to all clients for the administration of Health Reimbursement Arrangement Accounts.
• Expert plan design, including Summary Plan Description
• Coordination with other benefits, including high deductible plans and FSAs
• Critical nondiscrimination testing
• Claims processing & monthly reimbursement
• Year-to-date reports to employer
• 24/7 web-based participant account information
• IRS Form 5500 preparation, if needed
• Claims processed daily, with checks dispersed daily
Post Office Box 1635
Irmo, SC 29063
803-407-0133
866-826-6554 (toll-free)
803-407-1649(fax)
Mark Riley - x2121
Myra Brown - x2115
Tracy Boatwright - x2131
Post Office Box 1635 | Irmo, SC 29063 | Copyright © 2019 American Benefit Services , All Rights Reserved.