Various Health Reimbursement Arrangements are available. These include Health Reimbursement Accounts (HRA’s) and Medical Expense Reimbursement Plans (MERP’s). These plans are 100% employer funded.

 

Reimbursements typically include co-pays, co-insurances, deductibles and services not covered by your insurance plan. Unused funds do not have to be forfeited but may be carried over from year to year. HRA’s can also permit terminated employees to spend down their accounts until their accounts are depleted.

 

The plan design can set yearly limits and yearly role-over options. Plan limits do not have to be pre-funded in the employee account. Benefits are paid out as they occur once creditable documentation is provided. However, funds can be made available to the employee on a monthly or weekly basis or any other options determined by the employer. The employee would be reimbursed tax-free up to the maximum dollar amount in the account.

 

An HRA is considered part of the employer’s health benefit program. Therefore, a Plan Document and SPD are required. Upon termination, COBRA must also be offered to a participating employee.

 

SIEBA, LTD. can assist you in designing a plan that best suits your requirements and can then administer the benefits for you.