Why is an HRA Solution important?

HDHPs may provide lower premiums

HRA Solutions are growing in popularity. A High Deductible Health Plan (HDHP) is combined with a qualified Health Reimbursement Arrangement (HRA). An HDHP exchanges a higher deductible for a lower premium cost.

Employers have more control with an HRA

Health Reimbursement Arrangements (HRAs) are funded solely by the employer. HRAs can be funded with hard dollars, or with notional credits that are converted to hard dollars when a claim is verified. Employers have discretion to allow any unused funds to roll over to the next plan year.

HRA funds can be used for eligible expenses

An HRA savings vehicle helps employees pay for eligible medical expenses before the deductible is reached. Employees can use their HRA funds for expenses that are defined as eligible in the Summary Plan Document. Eligible expenses may include deductibles, co-pays, coinsurance, doctor fees, and dental care.

HRA Solutions reward healthy lifestyles

Employers can help motivate healthy lifestyles by linking HRA funding to wellness programs. An increased focus on wellness may result in increased productivity and reduced absenteeism. HRA Solutions are also designed to promote health consumerism.