What is involved in administering an HRA?
Most HRAs self-fund all or part of a deductible. Claims are paid directly from Explanation of Benefit (EOB) reports provided to participants by insurance companies once a claim has been settled. FlexBank then reimburses the participant for eligible expenses per the HRA plan design.
Can an employer self-administer an HRA?
Yes. However, the complexity of self-administering an HRA has increased due to CMS reporting requirements. Employers who sponsor an HRA must generally report, electronically, information on HRA participants and benefits to the Centers for Medicare and Medicaid on a quarterly basis. Failure to report may result in penalties of $1,000 per dependent per day.
What is the cost to outsource administration of the plan?
Employers should call FlexBank for pricing on outsourcing the administration of the plan.
What HRA services does FlexBank perform for the associated fees?
Fees Include: Quarterly reporting to the Centers for Medicare and Medicaid (CMS) when required Reimbursements processed within 24 business hours Fax, mail, scan/email, upload via mobile site or walk into our office for reimbursement Receive, review, and process all HRA claims upon receipt Reimbursements made by check or direct deposit Provide employee 24 hour Web […]
May an employee receive cash in lieu of a deposit to his HRA?
No. The right to receive cash in lieu of an HRA deposit will disqualify the plan.
Must an annual 5500 report be filed for an HRA?
A 5500 is only required where the plan covers more than 100 participants.
Must the employer report HRA benefits on the employees’ W-2?
No.
Does an HRA affect employees who are eligible for Medicare Part D?
If you have employees, or retired employees covered by the plan at the beginning of the plan year, who are eligible for Medicare Part D and who are enrolled in your group health plan and health reimbursement arrangement (HRA), the employer must provide them with a letter of creditable or non-creditable coverage. An employee is […]
Does the employer need to offer COBRA continuation for an HRA?
Yes, employers required to offer COBRA must include the HRA. The premium for the HRA component is calculated as the average benefit paid out in the last year plus cost of administration plus 2%.
Can a former employee who elects COBRA spend accumulated amounts on expenses incurred after employment?
Yes.