Health Reimbursement Arrangements (HRAs)

What are the Benefits of an HRA?

Offset the ever increasing cost of healthcare by adding a Health Reimbursement Arrangement (HRA), to your consumer driven healthcare strategy. HRAs help save money in three ways:

First, you can integrate HRAs with your health insurance coverage and enjoy a typical premium savings of up to 20% by offering a high-deductible health plan (HDHP) versus a standard health plan.

Second, it helps your employees understand the “true” cost of healthcare that ultimately encourages them to spend their dollars and yours more wisely.

Third, a Health Reimbursement Account is a tax-advantaged program, so reimbursements for eligible expenses are tax-free for the employee and can be written off as a business expense by you.

Not sure how to get started? It’s simple. With an HRA from Flex you get peace of mind knowing that we are here to guide you every step of the way – saving you precious time and energy. As an HRA Administrator, Flex offers a first class experience for you and your employees that puts you in control and includes:

  • Faster reimbursement of eligible expenses
  • Automated, simplified claims processing with numerous health, dental and vision plans nationwide (contact Flex for details)
  • Secure web site with online claim submission, real-time account information, flexible reporting options and more
  • New, user-friendly mobile app

View More Plan Features

FlexHRA Plan Features

Educational Guidance

  • Complimentary review of benefit plan designs and strategies
  • On-site or online enrollment meetings with dedicated education specialists
  • Pre- and post-enrollment communications and educational materials
  • Free HRCI accredited webinars from FlexUNIVERSITY®

Plan Options

  • CrossTech - Simplified, automated and paperless claims processing, which offers a secure data feed for claims information with:
    • HCSC plans (Blue Cross and Blue Shield of IL, MT, NM, OK & TX) 
    • Delta Dental
    • IHS Health Solutions®
      • Contact Flex to learn about claims feeds with additional health, dental and vision plans
  • Various plan design, eligible expense and funding options
  • Flexible reimbursement frequency options including, daily and weekly
  • Integration with any aggregate or embedded insurance plan
  • Full integration with our other Flex Plans, allowing stackable operation

Personalized Service

  • Live one-on-one customer care with dedicated specialists
  • Web portal - Integrated real-time plan access for all your Flex Plans
    • Plan Administrators
      • Review account balances and activity
      • Make administrative updates
      • View payment history and plan details
      • Access participant and funding reports
      • Update participant status
      • Select Email/Text communication alerts to help manage your account
      • Download forms
      • And more!
    • Participants
      • Review account balances and activity
      • Submit claims online, upload receipts and view status
      • Access payment history and plan information
      • Add and update banking information
      • Download Forms
      • And more!

Health Reimbursement Arrangement (HRA) FAQs
 

What is an HRA?

Health Reimbursement Arrangements (HRAs) are defined contribution benefits established by an employer for their employees. Each year an employer determines a specified amount, or a defined contribution benefit, of pre-tax dollars to assist employees with medical expenses. Typically associated with an HDHP, this consumer driven plan is entirely funded by the employer and provides tax-free reimbursements to employees for substantiated medical expenses. HRAs provide a high degree of flexibility for the employer, as there are many plan designs to choose from which determine how and when the reimbursements are issued.

What HRA Plan Designs are Available?

Various plan design and eligible expense options, including:
 
  • Integrated HRA
    • Integrates with any aggregate or embedded group health plan
    • Plan options include:
      • First-dollar access to the HRA
      • Deductible first, then access to the HRA
      • Sandwich or reversed sandwich deductible
    • Eligible medical expenses include co-payments, co-insurance, deductibles, physical therapy, chiropractic care, acupuncture, prescription drugs, bandages, pregnancy test kits, blood pressure monitors, etc.
 
  • Dental/Vision HRA
    • Used to exclusively reimburse dental and vision care expenses
    • Eligible dental expenses include exams, cleanings, X-rays, braces, etc.
    • Eligible vision expenses include exams, contact lenses and supplies, eyeglasses, laser eye surgery, etc.
 
  • Qualified Small Employer HRA – New Solution!
    • Available for employers NOT subject to the Employer Mandate and who DO NOT offer a group health plan
    • Primarily used to reimburse individual health insurance premiums
    • Can also include all 213(d) eligible medical expenses that include:
      • copays, co-insurance, deductibles, and individual health insurance premiums
      • dental expenses, such as exams, cleanings, X-rays, braces, etc.
      • vision expenses, such as exams, eyeglasses, eye surgery, etc.
      • chiropractic care, acupuncture, prescription drugs, over-the-counter medicines, etc.
 
  • Retiree HRA
    • Primarily used to reimburse Medicare premiums
    • Can also include all 213(d) eligible medical expenses that include:
      • co-pays, co-insurance, deductibles and Medicare premiums
      • dental expenses, such as exams, cleanings, X-rays, braces, etc.
      • vision expenses, such as exams, eyeglasses, eye surgery, etc.
      • chiropractic care, acupuncture, prescription drugs, over-the-counter medicines, etc.
 
  • Limit the types of eligible services and place maximum annual spend amounts on specific categories of care
  • Full integration with our FSA, HSA and Commuter Plans
  • If an FSA is also offered to employees, our technology allows you to determine the payment priority between the HRA and the FSA
  • Flexible reporting options available for Employers, Participants, and Producers

How Does a Health Reimbursement Arrangement Work?

The defined contribution amount is placed into a Health Reimbursement Account by the employer at the beginning of the plan year. Reimbursements are distributed by the HRA administrator based on the selected plan design to employees as medical expense claims are filed and substantiated.  Some eligible medical expenses that are reimbursable to the employee include:

  • Deductible Expenses
  • Copays
  • Coinsurance Expenses

These reimbursements are distributed by the HRA administrator to employees on a tax-free basis. As a result, the benefit does not increase the employee’s taxable income. Employers also save because all contributions to the HRA are 100% tax deductible, resulting in a mutually beneficial program.

  • Dental/Vision HRA
  • Dental Expenses
  • Vision Expenses