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?