What is a Health Reimbursement Arrangement (HRA)?
A Health Reimbursement Arrangement or HRA is a type of Reimbursement Plan that allows the employer to contribute tax-free dollars to a designated employee account or accounts. These accounts can be for employee reimbursement of out-of-pocket medical expenses, deductibles or prescriptions. What expenses are eligible are determined by your employer, and if you are unsure what expenses you can be reimbursed for, please contact us.
What are the advantages of an HRA?
Employees are not taxed on the value of their HRA coverage or on reimbursements they receive from the HRA.
An HRA is funded as claims are filed.
HRAs are not subject to HSA rules thus allowing greater flexibility in the plan design of the high deductible health plan.
What are some examples of an HRA?
A Health Reimbursement Arrangement or HRA can have virtually an infinite number of plan design options. However, the three most fundamental options include the following:
First Dollar HRA: This plan reimburses expenses from the first dollar up to the accumulated balance in the HRA account. The employee pays the remaining expenses up to the amount of the health insurance plan deductible.
The Bridge HRA: This plan pays for eligible expenses after the employee pays an initial amount established by the employer.
Shared HRA: The Shared HRA shares the cost of covered expenses subject to the health insurance plan deductible.
Additionally, plans can be designed with a combination of these three plans giving the employer significant flexibility to design a plan that is appropriate for their workforce.
To submit expenses to us for reimbursement, fill out a claim form and attach EOB or reciepts if your plan allows you to submit for other expenses. You can mail, email, fax, or submit claims online. We also have a Mobile App. you can submit claims through. You can find more about the Mobile App. here.
To submit by:
- Mail: Alternative Benefit Systems PO Box 349 Blandon, PA 19510
- Fax: (855) 414-6965
- Email: firstname.lastname@example.org
- Online: Through the user portal at the top right of the screen. If you haven't registered prior you need to contact us and tell us your employer. email@example.com
- Mobile App. You must be registered for the online user portal, and use that user name and password to login to the app.
We process HRA claims weekly.