HRA

Health Reimbursement Arrangements

Types of HRAs
HRA Overview
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Health Reimbursement Arrangements

Traditional Benefit

Health Reimbursement Arrangements

A Health Reimbursement Arrangement is an employers’ promise to pay should certain criteria be met. For example, a common HRA Plan Design is one that reimburses up to $1000 per year towards deductible expenses. In the deductible example, if the employee only incurs $500 worth of deductible expenses then no HRA money will be distributed.

Modern Benefit

Individual Coverage HRA

An Individual Coverage HRA (ICHRA) is an HRA specifically designed to reimburse employees for medical insurance they have purchased on their own. It’s a tax-free employee benefit where the employer sets their own budget on how much health benefits will cost, and employees choose coverage that is specific to their needs.

Strategic Benefit

Dental / Vision HRA

Did you know that HRAs can also reimburse for certain non-medical expenses tax-free? Dental and vision expense HRAs have been popular for many years due to their simplicity, ease of use with employees, and positive impact to employees.

Download HRA Information Sheet

Benefit of HRA’s

Lower everyone’s costs!

How They Work

Purpose

Health Reimbursement Arrangements positively impact the financial health of a company by lowering premiums and allowing money to flow to where it’s needed most. Employees.

Design

HRAs are versatile enough to address the specific needs that employer is looking to meet. High deductibles, copays, and out-of-pocket maximums are only a few of the expenses HRAs can cover.

Expenses

Coinsurance and deductible expenses, prescription drugs and OTC items, Dental & vision care, and even specialty or alternative healthcare.

Payments

Also known as, Contributions. Once an eligible claim has been approved, reimbursement is sent to the member via ach or check. Money is retained by the employer until then.

Plan Designs

Medical

  • All or a portion of the member’s deductible expenses.
  • In and/or Out-of-Network medical expenses.
  • Out-of-Pocket medical expenses.

Dental

  • Dental expenses on a self-funded basis.
  • Dental expenses not covered by insurance.

Vision

  • Vision expenses on a self-funded basis.
  • Vision expenses not covered by insurance.

Premium

  • Individual medical
  • Medicare
  • Dental
  • Vision

Eligible Expenses

Here are a few of the expenses eligible under an HRA:

  • Doctor visits and surgeries
  • Over the counter medications (first aid, allergy, asthma, cold/flu,
    heartburn, etc.)
  • Prescription drugs
  • Dental and orthodontia
  • Vision expenses, such as frames, contacts, prescription
    sunglasses, etc.
  • Premium
  • Non-insurance medical procedures.

Frequently Asked HRA Questions

What are the benefits of an HRA?

HRAs have several benefits including:

  • Reimburses a wide range of expenses not covered by insurance.
  • Employer funded.
  • 100% Tax saving free benefit.
  • Year-to-year roll over options.

Stackable with an HSA to maximize savings!

How much is contributed?

Employers can offer to contribute as much or little as needed to specific expenses. One example: An HRA offering up to $2,000 annually towards deductible expenses once employee has already paid $3,000 towards their deductible. 

How do employees use an HRA?

Once an enrolled member has an eligible expense, they will then file a claim for reimbursement. Once that claim is approved funds are sent to the employee via ACH or check. Note: employers often hire an administrator like Flyte to manage this process for them because it’s cheaper and simpler. 

What is an HRA?

An HRA is an employer-funded employee benefit allowing an employer to reimburse for specific Section 213D eligible expenses.

HRAs are a shield in the war between deductibles and premiums.

HRA Administration

Flyte is a full service HRA administrator
“Can my employees turn their receipts into HR instead of hiring Flyte to manage our claims?” We get this question often. The quick answer is yes, employers are not required to hire an administrator to manage their HRA. We aren’t shy about that because hiring an administrator should have a clear value to the employer, and their goals. We would love to talk with you about yours.

Simple and Affordable 
Flyte simplifies health account administration with industry leading innovators utilizing the most cutting edge benefits technology available. Our mission is to simplify your HRA so you can focus on your day.

Here is what it takes to provide quality HRA Administration:

Plan Design and Documentation

Mobile and Online Claim Filing

Multi-benefit Integration

Enrollment and Communication Support

Dedicated Support Team

Online Reporting and HR Resources

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