After years of working with businesses of all shapes and sizes, we've learned several strategies to help a company design a perfect stand-alone HRA. What is a stand-alone HRA? Rather than paying the costs to provide a specific group health plan, an employer can fix their employee health benefit costs on a monthly basis by establishing a stand-alone Health Reimbursement Arrangement (HRA). 

A Health Reimbursement Arrangement (HRA), is an IRS-approved, employer-funded, medical expense reimbursement plan. An HRA allows an employer to reimburse employees tax-free for out-of-pocket medical expenses and individual health insurance premiums. There there are two primary types of HRAs:

In Part 2 of our Q&A on Health Care Reform and Defined Contribution (see Part 1 on Defined Contribution and Health Care Reform), we'll summarize the most common health care reform questions on health insurance exchanges, health insurance trends and navigators.

The Patient Protection and Affordable Care Act (PPACA) was signed into law on March 23, 2010 and over the last three years we've aimed to provide a wealth of information about how health care reform impacts defined contribution, Health Reimbursement Arrangements (HRAs), employers, insurance professionals, CPAs, and employees.

Health Reimbursement Arrangements (HRAs) are employer-funded plans that provide employees with pre-tax dollars for out-of-pocket medical expenses (including health insurance premiums). Here are six reasons companies choose to offer Health Reimbursement Arrangements.

What is the original idea behind Health Reimbursement Arrangements (HRAs)? It's actually very simple. Which is why every employer, health insurance agent and financial planner should read IRS Notice 2002-45.

Over the last 2 weeks, we have received several inquiries regarding PHS Act Section 2711 annual limit requirements and how it affects the future of stand-alone Health Reimbursement Arrangements (HRAs). This article outlines a special exemption from the 2711 rules for most stand-alone HRAs that reimburse health insurance premiums.

A frequently asked question we receive at Zane Benefits is "Are HRAs Required to Cover Essential Health Benefits?"  The answer is No!  Here's why:

For most businesses, the solution to ObamaCare is simple: Offer a “Business Expense Account” for Healthcare.  A new vehicle, called an “HRA”, or health reimbursement arrangement, allows employers to get out of the health insurance business, and simply give select employees monthly allowances to spend on their own health insurance policy in a state health insurance exchange.  If you understand how business expense accounts work, you will understand how HRAs work.

Starting September 23, 2012, health insurance issuers and group health plans will be required to provide eligible participants with an easy-to-understand summary about a health plan’s benefits and coverage. The new regulation is intended to help individuals better understand their health insurance options.