An HRA is a Health Reimbursement Arrangement or Health Reimbursement Account that allows tax free medical and insurance expense reimbursement. 

The HRA Summary Plan Description, or SPD, is the main vehicle for communicating HRA Plan rights and obligations to HRA participants.

When an employer self-administers a Health Reimbursement Arrangement (HRA) Plan, they should ensure they comply with the HIPAA Privacy Rule.

An HRA plan is a self-funded health plan and is governed by HIPAA Privacy Rules. In order to administer an HRA, the entity processing employee claims receives protected health information (PHI) that is protected by HIPAA. Employers that offer a fully-insured health plan and sponsor an HRA often overlook their HIPAA Privacy obligations and rely on the insurance carrier to comply with the HIPAA Privacy Rules.  HRA compliance obligations, however, rest with the employer. Employers that do not comply can be subject to civil penalties of up to $100 per violation.

A Health Reimbursement Arrangement (HRA) plan offers employers more flexibility than traditional health benefits. Now, new HRA Software allows employers to design a comprehensive health benefits plan in three easy steps: 

An HRA is a Health Reimbursement Arrangement or Health Reimbursement Account that allows tax-free reimbursement of medical and insurance expenses.The HRA Plan Document describes the HRA Plan's terms and conditions related to the operation and administration of the HRA Plan.

According to Business Insurance, CBIZ Benefits & Insurance Services and Paychex Insurance Agency Inc. obtained the largest revenues from employee benefits in 2010.

Many Third Party Administrators (TPAs) promote HRA Debit Cards (see Health Reimbursement Arrangements) as a hassle-free mechanism for employee payment of medical expenses.  However, employers should avoid using HRA debit cards because doing so is time-consuming, costly and unnecessary. Negative characteristics of HRA debit cards include:

What is a Health Reimbursement Account?

A Health Reimbursement Account is an IRS approved, tax advantaged, health benefit plan that reimburses employees for out of pocket medical expenses and individual health insurance premiums. An Health Reimbursement Account is not health insurance. The Health Reimbursement Account allows the employer to make contributions to an employee's account and provide reimbursement for eligible expenses. The Health Reimbursement Account is an excellent way to supplement health insurance benefits and allow employees to pay for a wide range of medical expenses not covered by insurance.

Health Reimbursement Accounts are notional accounts; no funds are expensed until reimbursements are paid. Through Health Reimbursement Account, employers reimburse employees directly only after the employees incur approved medical expenses.

A Third Party Administrator (TPA) for employee health benefits is a person or organization that performs administrative services (e.g. claim processing, adjudication, record-keeping), usually on behalf of an employer that self-insures health benefits. 

Guaranteed issue individual health insurance exists in all 50 states.  Last year, we posted a comprehensive guide to guaranteed issue health insurance.  This year's guide includes state-specific updates and a brief overview of the types of guaranteed issue health insurance.

Guaranteed issue individual health insurance refers to health insurance that does not involve the process of medical underwriting and must be provided to an eligible applicant regardless of the applicant’s age, gender, or any pre-existing health condition prior to enrollment. 

In October of 2011, Kathy Sebelius, Health and Human Services (HHS) Secretary, admitted that the Community Living Assistance Services and Support (CLASS) Act was financially unfeasible. 

In March 2010, the Patient Protection and Affordable Care Act (PPACA) was signed into law.  A portion of the law, titled the Community Living Assistance Services and Support (CLASS) Act, established a national program for individuals to voluntarily purchase long-term care insurance.  The program was to be effective January 1, 2011.

The easiest way to offer health benefits today is via a health reimbursement arrangement (HRA). With the right HRA Software, employers can now record tax-free health care reimbursements via their existing payroll service (e.g. Paychex, ADP, Quickbooks, etc.).