About

Health Reimbursement Arrangements

Waterbury & Associates

Intro

HRA’s

 

Health Reimbursement Arrangement (HRA) plans coexist with all plan designs and do not require a high-deductible health plan.

Benefits of HRAs include: 

  • the HRA is an employer account and integrated into a qualified health plan;

  • accounts are not funded; they are an employer book-keeping entry;

  • HRA accounts can reimburse all or a defined subset of non-reimbursed IRS Publication 502 expenses;

  • year-end balances are not required to roll-over into the following plan year;

  • plans are subject to COBRA rules;

  • plans are best utilized when integrated with a fully-insured health plan;

  • QSEHRA plans are available to ACA defined small employer groups.

     

    Receivables include

     

    • In 2019 new HRA regulations introduced the ICHRA and EBHRA applicable to large and small employers with effective dates January 1st, 2020 forward:

       

      • Individual Coverage HRA (ICHRA): applicable to employee classes who are not offered employer-sponsored group health insurance and have an individual health insurance policy. Employees can use the employer-determined annual contribution to pay for health insurance premiums and unreimbursed IRS S. 213(d) expenses.

      • Excepted Benefit HRA (EBHRA): applicable to employees who are eligible for the employer-sponsored health plan. Employees can use the employer annual contribution (up to $1,800) to pay for IRS S. 213(d) expenses, with exceptions for certain premiums. 

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    St. Paul, MN 55105

    [email protected]
    ​651.269.0322