Park City, Utah (PRWEB) March 16, 2013
Today, Zane Benefits, Inc. published new information health reimbursement arrangements. Zane Benefits, which provides comprehensive and flexible alternatives to traditional employer sponsored health benefits, is the leader in defined contribution and health reimbursement arrangements.
According to Zane Benefits’ website, Health Reimbursement Arrangements (HRAs) are simple in nature. However, there are many custom plan design options that give employers flexibility and control over their health benefits. Zane Benefits outlined eight key HRA plan design options.
HRA Plan Design #1: Type of HRA
According to Zane Benefits’ website, there are two main types of HRAs:
- Stand-Alone HRA: A stand-alone HRA is not linked to a major medical plan, rather the HRA is the health benefit. Employers can reimburse for individual health insurance premiums, as well as other eligible out-of-pocket medical expenses.
- Integrated HRA: The most commonly-known type of HRA is one that is integrated with a high deductible major medical plan. The HRA is offered only to those who take the major medical coverage.
This article focuses on stand-alone HRAs.
HRA Plan Design #2: HRA Allowance & Frequency
According to Zane Benefits’ website, employers choose the HRA allowance amounts and the frequency they will they be available (monthly or annually). For example, an employee could have a $100 monthly HRA allowance, made available at the beginning of each month. Or, an annual allowance of $1,200 made available at the beginning of the plan year.
There is no minimum or maximum HRA contribution amounts, and all HRA funds are notional (paid only after the medical expense is substantiated).
HRA Plan Design #3: HRA Classes & Eligibility
According to Zane Benefits’ website, employers can provide different HRA allowances by class of employee. With HRA class design, employers can allocate different HRA allowances based on bona-fide job criteria such as job description, length of stay with the company, geographic location, part-time or full-time status, etc. ERISA and HIPAA allow this, as long as all "similarly situated" employees are treated equally.
HRA Plan Design #4: Annual Rollover of Unused Funds
According to Zane Benefits’ website, employers choose what happens to unused HRA funds at the end of the plan year. An HRA can be designed with full rollover of unused funds, a capped rollover of unused funds (a maximum amount to rollover), or no rollover of unused funds ("use it or lose it").
HRA Plan Design #5: HRA Eligible Medical Expenses
According to Zane Benefits’ website, the IRS sets the definition for medical expenses that can be reimbursed through an HRA (see Section 213(d) of the Internal Revenue Code). From this list, however, an employer can limit expense categories not to reimburse. Categories may include health insurance premiums, doctor's visits, hospital care, pharmacy, mental health, physical therapy, etc.
HRA Plan Design #6: HRA "EOB-Only" Requirement
According to Zane Benefits’ website, an HRA can only reimburse for medical expenses that were also covered by a major medical plan. In this case, an employer can require that all expenses are submitted with an Explanation of Benefits ("EOB") which shows that the medical expense was covered under insurance. This is most common with an integrated HRA (also called GroupHRA), but can be applied to any HRA plan.
About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHRA") for Health Reimbursement Arrangements (HRAs) and defined contribution health care. The flagship software provides a 100% paperless administration experience to employers and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about ZaneHRA, visit http://www.zanebenefits.com.