A Health Reimbursement Arrangement (HRA) is an employer-funded spending account that can be used to pay qualified medical expenses such as deductibles, coinsurance and copays.
ABS offers an HRA, which can be offered paired with an insured medical plan from our sister company, US Health and Life Insurance Company (USHL), a medical plan from another insurance carrier, or a self-funded plan administered by ABS or another third party administrator.
The ABS HRA offers employers the ability to save money by pairing less costly, higher deductible insurance plans with a self-funded HRA. This strategy facilitates a premium dollar savings while controlling costs, maintaining benefits and providing enhanced employee benefits.
Clients with 20 or more enrolling lives have several reimbursement options, highlighted below.
The employer selects a reimbursement percentage to apply to the single and two person/family deductible. Within this package, the employer chooses whether the employee pays first for any incurred claims or the HRA pays simultaneously.
The employer sets a common percentage to cover both deductible and coinsurance liability; i.e. 50% or 100% of the deductible and coinsurance. The percentage must be universal for both deductible and coinsurance. The employer can choose whether the HRA pays simultaneously or the employee pays first for this HRA option, as well.
A variety of custom HRA plan designs options can be built for groups with 101 or more enrolling lives. These options include using an HRA to reimburse for deductibles, coinsurance amounts, copays, pre-certification penalties, and, for dental plans, amounts over reasonable and customary.