Deductible Gap HRA Plan
The Deductible Gap Health Reimbursement Arrangement (HRA) plan is designed to be coupled with a High Deductible Health Insurance Plan and will pay for only items covered by the insurance policy it compliments. The employer buys a high deductible group health insurance plan, say $3,000 annual deductible at a considerable savings over the previous $500 deductible plan. However the employees don't see much of a benefit in having to pay for medical expenses out-of-pocket before reaching the higher deductible. The Deductible Gap HRA is designed by the employer so the employees pay the first $500 in medical expenses as they did previously and the new HRA Plan will pay deductible expenses from $501 to $3,000, or up to $2,500 only to employees who actually experience a deductible in excess of their normal $500. The employer benefits from reduced insurance costs, but the effect to the employee is cushioned with the Deductible Gap HRA.
Comprehensive HRA Plan
The Comprehensive HRA can cover any out-of-pocket medical, dental, vision, insurance premium expense, co-pays, and deductibles. The Comprehensive Plan may or may not be coupled with a high deductible health coverage, hospital-only medical plan, or individual health insurance plans. Through this HRA plan design employers normally elect to give employees a defined annual amount, for example $2,000. Some employees may choose to spend the money on dental and vision benefits and others may spend theirs on individual health insurance premium.
Limited HRA Plan
A Limited HRA plan design is very versatile. Let's say you learned you could save a substantial amount of money by adding a $1,000 hospital copayment to your group plan. Then simply design an HRA that will pay that $1,000 if any employee actually needs to go into the hospital. Design options for Limited HRA Plans are unlimited. Employers who find ways to reduce premium by adding extra deuctibles or copayments can simply establish an HRA to pay those expenses, if they occurr. Find a way to cut premium and insure the difference yourself. Other designs include a singular benefit for prescription drugs, dental, vision etc. Limited HRA plans can be restricted to cover just one medical expense.
Premium Reimbursement Arrangement Plan
The PRA allows employers to reimburse only health insurance premiums including group sponsored insurance plans as well as individual health insurance policies outside the group, or long-term care insurance.
HRA Plan Document Package Includes:
HRA Plan Document - Plan Documents are personally prepared for each client. Document should be accepted and signed by an Owner or Officer of the Company and kept on file for review by employees, accountants, IRS, etc.
HRA Summary Plan Description - Required for each employee. Explains the Plan Purpose, Who is Eligible, How To Enroll, etc. in easy to read language. Also includes all information required by the Internal Revenue regarding the Plan Year Start and End Dates, Agent for Legal Service, Fed. ID#, and information regarding COBRA, FMLA, and required DOL information.
HRA Election and Claim Form - Personalized for the Company it will include the Election Agreement and Claim Form to submit bills for reimbursement.
HRA Administrative Handbook - Includes sections on: Administration, Non-Discrimination Testing, and Reporting and Disclosure information. You will be provided with instructions regarding Plan setup, maintenance procedures, etc.
Resolution to Adopt a Section 105 Plan- Includes minutes of the meeting to adopt the Section 105 Plan as an employee benefit.
