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We've updated one of our most popular materials. See what's new in our guide to MERPs.

A Guide to Health Reimbursement Accounts

Design Requirements When Creating a HRA

As discussed previously in the section on Use Cases, there are many different ways to use Health Reimbursement Accounts, as long as they follow Health Reimbursement Account rules.

In this section we will cover design requirements for Health Reimbursement Accounts (HRAs).

Designing a Health Reimbursement AccountDesigning_Health_Reimbursement_Account

To design a Health Reimbursement Account, ask these questions:

  • What type of HRA are we using? (See: Health Reimbursment Account Use Cases)

  • When will the HRA plan start?

  • What HRA allowance will we provide, and at what frequency (annually or monthly)? Will we provide the same allowance to all employees, or offer different allowances based on employee class or family status?

  • What makes employees eligible for the benefit?

  • What categories of medical expenses will we reimburse?

  • What happens to unused HRA funds at the end of the plan year?

  • Will the HRA have a deductible or co-insurance?

  • Who will administer the HRA?

  • Do we understand the compliance rules with the HRA?

The Comprehensive Guide to the Small Business HRA