A health reimbursement arrangement (HRA) is often a better option for offering an affordable and flexible health benefit to employees. But how does an HRA work?
In this video, we'll explain the basic structure of an HRA, three of the most popular types, and how you can manage your HRA.
Learn more in our blog post on the topic: www.peoplekeep.com/blog/how-d...
See our HRA eligible expense tool: www.peoplekeep.com/hra-eligib...
CHAPTERS:
0:00 - Introduction
0:29 - What is an HRA?
0:49 - What is the basic structure of an HRA?
1:18 - How to set an allowance
1:58 - What expenses are eligible for reimbursement?
2:32 - How do I reimburse employees?
3:09 - What types of HRAs are available?
4:24 - How PeopleKeep can help you offer an HRA
An HRA is an employer-funded health benefit that allows you to reimburse your employees tax-free for qualifying medical, dental, or vision expenses. Depending on the type of HRA you offer, this can include individual health insurance premiums and out-of-pocket medical expenses.
An HRA follows a simple four-step process. First, employers offer their employees a monthly allowance for medical expenses. Employees pay out-of-pocket for their medical costs and then submit a reimbursement request to you along with proof of purchase, such as a receipt. Once you approve their request, you can reimburse them up to their allowance amount.
One of the advantages of offering an HRA is the cost savings over group coverage. You can choose how much you want to offer your employees each month in allowances. Depending on the type of HRA you offer, you may be able to offer different allowances by class, such as full-time or part-time. You can also differ allowances by family status, such as single or married.
With an HRA, there’s no need to pre-fund an account. You only pay out when you approve a reimbursement request.
This allows you to offer a health benefit that fits your budget.
If you found this video helpful, be sure to give us a like and subscribe to our channel for more employee benefits and small business tips. Thanks for watching.
PeopleKeep is the leading provider of personalized benefits administration software, Since starting in 2006 as Zane Benefits, we've helped thousands of organizations offer affordable benefits to their employees.
#healthinsurance #hra #employeebenefits