Are HRAs right for you?

05/14/2014Michael Schwitzer – Account Executive

Mel Grau – Marketing Coordinator

Are HRAs right for you?

Sound Check

What is an HRA?

An HRA Defined

• Health Reimbursement Account• Helps offset costs of High Deductible

Health Plans• Employers specify which medical

expenses and HRA pays for

Why would someone want an

HRA?

HRA Advantages

Flexibility High Employer Control High

Non-PortableUnused Funds

Retained by Employer

HRA Disadvantages

Employees cannot contribute to the

Account

Typically less consumerism than

an HSA

More legal compliance [ERISA,

COBRA, etc]

HRA vendor is required.

How does funding work with an HRA?

HRA Funding

• 100% Employer Funded• Money belongs to the Employer

– Non-portable– No Employee Cash Out

• Carry-over of funds determined by Employer

What else should people remember

about HRAs?

Other facts about HRAs• The Employer chooses when the HRA pays

for medical services• Timing of annual contributions also

determined by Employer• Medical expenses that are reimbursed can

be limited• HRAs are administered by a TPA, which

carries additional costs (typically pm/pm)

Questions?