HRA Plan Administration

The rising cost of health care is a concern for most employers. With the addition of an HRA, employers can enhance their benefit packages while still achieving their overall corporate goals of lowering health benefit costs or capping costs at their current levels.

What are Health Reimbursement Arrangements (HRA)?

HRAs are defined contribution healthcare plans, not defined benefit plans.

• They are employer-sponsored plans that combine the best aspects of Flexible Spending Accounts (FSAs) and Medical Savings Accounts (MSAs).
• HRAs do not require that employers advance claims payments to employees during the early months of the plan year.
• HRAs are provided with employer dollars, not employee salary reductions, so HRAs have greater employee acceptance.
• HRAs permit the employer to reduce health plan costs by coupling the HRA with a high-deductible (and usually lower-cost) health plan.

If you are interested in more information on the above plans, please contact us at:
Flex Contact